/NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/
CALGARY, July 4, 2016 /CNW/ - Cathedral Energy
Services Ltd. (TSX:CET) ("Cathedral") announces it is currently in
discussions with The Bank of Nova
Scotia and National Bank of Canada (the "Lenders") regarding proposed
amendments to its credit facility. The amendment to
Cathedral's credit facility is being contemplated in the context of
the prolonged industry downturn which has negatively impacted oil
and gas service company activity levels. Cathedral
expects to announce the terms and conditions of the amendments if
any, on or prior to, the release of Cathedral's second fiscal
quarter on August 10, 2016.
Waiver of Covenants
In connection with the above, the Lenders have revised the Q2
cumulative minimum EBITDA requirement for the two quarters ending
June 30, 2016 to $100,000 from $1.6
million. In addition, Cathedral's total available
credit facility has been reduced to $70
million from $80 million
(including a $35 million accordion
feature).
Continued Repayment of Debt
As of June 30, 2016 the total
drawn facility was $27.3 million,
which included a $0.8 operating loan,
a $25 million term loan and
$1.5 million in letters of
credit. This compares to a total drawn facility of
$34.0 million as at December 31, 2015.
FORWARD-LOOKING INFORMATION
This press release contains certain statements or disclosures
relating to Cathedral that are based on the expectations of
Cathedral as well as assumptions made by and information currently
available to Cathedral which may constitute forward-looking
information under applicable securities laws. In particular, the
statement related to expects to announce the terms and conditions
of amendments may contain forward-looking information. Many factors
could cause the performance or achievement by Cathedral to be
materially different from any future results, performance or
achievements that may be expressed or implied by such
forward-looking information. Cathedral's Annual Information Form
and other documents filed with securities regulatory authorities
(accessible through the SEDAR website (www.sedar.com) describe the
risks, material assumptions and other factors that could influence
actual results and which are incorporated herein by reference.
Cathedral disclaims any intention or obligation to publicly update
or revise any forward-looking information, whether as a result of
new information, future events or otherwise, except as may be
expressly required by applicable securities laws.
Cathedral Energy Services Ltd. (the "Company" or
"Cathedral"), based in Calgary,
Alberta is incorporated under the Business Corporations Act
(Alberta) and operates in the U.S.
under Cathedral Energy Services Inc. The Company is publicly
traded on the Toronto Stock Exchange under the symbol "CET".
Cathedral, is a trusted partner to North American energy companies
requiring high performance directional drilling services and
dependable flowback and production testing solutions. We work in
partnership with our customers to tailor our equipment and
expertise to meet their specific geographical and technical
needs. Our experience, technologies and responsive personnel
enable our customers to achieve higher efficiencies and lower
project costs. For more information, visit
www.cathedralenergyservices.com.
SOURCE Cathedral Energy Services Ltd.