Gasfrac Energy enters into C$100 million secured credit facility

By Marisa Wong

Madison, Wis., Aug. 31 - Gasfrac Energy Services Inc. announced that it entered into a new C$100 million secured syndicated credit facility on Wednesday.

The facility, which is led by HSBC Bank Canada, Bank of Montreal and Alberta Treasury Branches, consists of a C$10 million revolving operating credit facility and a C$90 million revolving credit facility that may be increased to C$115 million.

The borrowing base is calculated based on accounts receivable and capital asset balances.

The new facility is subject to annual renewals and, if not renewed on the term date, is repayable in quarterly payments equal to 1/12th of the outstanding amount beginning in the second quarter after the term date. The full balance is payable on the second anniversary of the term date.

The facilities are subject to customary financial covenants.

Gasfrac is an oil and gas service company based in Calgary, Alta.

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