High Arctic amends loan, extending timeline to complete asset sales

By Sara Rosenberg

New York, Dec. 29 - High Arctic Energy Services Inc. amended its credit facility, extending the dates by which mandatory asset sales must be completed, according to a news release.

Under the terms of the company's revolver, it had until Nov. 30 to raise net proceeds of C$37.5 million from the sale of equipment and until Jan. 31 to raise an additional C$12.5 million.

But, as of Nov. 30, the company had only successfully sold equipment for net proceeds of C$29.2 million, resulting in a shortfall of C$8.3 million.

With the amendment, the company has until Feb. 28 to complete the C$8.3 million of sales and until March 31 to complete the remaining C$12.5 million.

As part of the amendment, the company agreed to pay down C$4 million of the revolver using cash on hand.

High Arctic is a Red Deer, Alta.-based provider of specialized oilfield equipment and services.

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