High Arctic gets additional month to meet leverage covenant

By Angela McDaniels

Tacoma, Wash., Feb. 8 - High Arctic Energy Services Inc. amended its senior credit facilities to extend the deadline by which it must meet its consolidated leverage ratio requirement, according to a company news release.

The company must now meet a consolidated leverage ratio of 4.8 to 1.0 by March 11 instead of Feb. 11.

High Arctic needed to obtain about C$25 million of financing by Feb. 10 in order to reduce its debt to the levels required to meet the covenant. The extension gives the company more time to find the needed capital.

Alternatives being pursued include new credit facilities, asset sales and further amendments to the credit facilities. The company said its lenders have not committed to future amendments and may require High Arctic to reduce the current credit facility by an amount greater than C$25 million.

The company currently owes C$126.4 million under the facilities.

High Arctic is based in Red Deer, Alta., and provides specialized oilfield equipment and services through its subsidiaries.

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