Canadian Energy closes expanded C$200 million three-year loan facility

By Susanna Moon

Chicago, Sept. 5 – Canadian Energy Services & Technology Corp. said it obtained a new C$200 million three-year credit facility with a syndicate of lenders led by the Bank of Nova Scotia as lead arranger and administrative agent.

The facility represents a bump up from the company’s previous C$150 million facility, according to a company press release.

The facility matures Sept. 30, 2017 and has a one-year extension option.

Also, the company may upsize the facility by C$100 million to a maximum of C$300 million.

The pricing terms on drawn amounts and financial covenants are similar to those of the company's previous credit facility, the company said.

The company said it closed the previously announced acquisition of Southwest Treating Products, LLC, which will accelerate the expansion of the company's U.S. production and specialty chemicals operations into the west Texas Permian Basin and the Eagle Ford shale in south Texas through its wholly owned subsidiary Jacam Chemicals 2013, LLC.

The company is a Calgary, Alta.-based producer of chemical solutions used in drilling for crude oil.

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