Shawcor obtains term sheet for covenant relief under credit facility

By Sarah Lizee

Olympia, Wash., June 25 – Shawcor Ltd. said the co-lead arrangers of its banking syndicate, Toronto-Dominion Bank and National Bank of Canada, have agreed to a term sheet to provide financial covenant relief under its credit facility until the end of the first fiscal quarter of 2022.

The term sheet has been provided to the rest of the banking syndicate for their approval, according to a press release.

It is expected that the amendment to the credit facility will be in place before the end of July.

In the interim, all lenders in Shawcor’s banking syndicate have waived compliance with the leverage and interest coverage ratios under the credit facility for Shawcor’s second fiscal quarter ending June 30, should Shawcor be in default thereof.

Toronto-based Shawcor is an energy services company specializing in products and services for the pipeline and pipe services segment of the oil and gas industry.

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