North American Energy Partners Announces Amended Credit Facility
October 01 2012 - 6:00AM
Marketwired
North American Energy Partners Inc. ("NAEP" or the "Company")
(TSX:NOA) (NYSE:NOA) today announced that it has entered into an
amended and restated credit agreement with its syndicate of
lenders. The amendment extends the maturity date of the existing
credit agreement to October 31, 2014, while also easing
Consolidated EBITDA-related covenant requirements within the
agreement.
Under the terms of the amended and restated credit agreement,
NAEP will be able to increase its capital leasing capacity from $30
million to $75 million, supporting the Company's planned conversion
of up to $50 million of existing operating leases into capital
leases. This amendment will be accompanied by restrictions on net
capital expenditures that can be made by NAEP through the term of
the agreement.
Net proceeds from future asset sales and divestitures, including
net proceeds from asset sales disclosed in the Company's first
quarter filings, will be used to pay down the existing $35.9
million, as at June 30, 2012, Term B portion of the current credit
facility agreement. Following repayment of the Term B portion, 50
per cent of net proceeds from any subsequent asset sales will be
used to reduce the existing Term A facility, with the remainder
available for working capital.
"We are pleased to have reached this mutually satisfactory
agreement with our lending partners," said David Blackley, Chief
Financial Officer of NAEP. "The amended agreement strengthens our
financial position, adjusts covenants to reflect the effect of the
increase in capital leases, and any short term decline in EBITDA.
The changes in the facility demonstrate our commitment to reducing
our debt and provide added certainty as we restructure our business
with a focus on cost reduction, improvement of our risk profile and
the rightsizing of our mining asset base."
About the Company
North American Energy Partners Inc. (www.naepi.ca) is one of the
largest providers of heavy construction, mining, piling and
pipeline services in western Canada. For more than 50 years, NAEP
has provided services to large oil, natural gas and resource
companies, with a principal focus on the Canadian oil sands. The
Company maintains one of the largest independently owned equipment
fleets in the region.
Non-GAAP Financial Measures
This release contains non-GAAP financial measures. These
measures do not have standardized meanings under Canadian GAAP or
US GAAP and are therefore unlikely to be comparable to similar
measures used by other companies. The non-GAAP financial measure
disclosed by the Company in this release is EBITDA (as defined
within our credit agreement with our lenders). The Company provides
a reconciliation of EBITDA to net income reported in its most
recently filed Management's Discussion and Analysis which may be
obtained for free by visiting EDGAR on the SEC website at
www.sec.gov or on the CSA website at www.sedar.com.
Forward-Looking Statements
The information provided in this release contains
forward-looking statements. Forward-looking statements include
statements preceded by, followed by or that include the words
"may", "could", "would", "should", "believe", "expect",
"anticipate", "plan", "estimate", "target", "project", "intend",
"continue" or similar expressions. Actual results could differ
materially from those contemplated by such forward-looking
statements as a result of any number of factors and uncertainties,
many of which are beyond our control. Important factors that could
cause actual results to differ materially from those in
forward-looking statements include success of business development
efforts, changes in oil and gas prices, availability of a skilled
labour force, our internal controls, general economic conditions,
terms of our debt instruments, exchange rate fluctuations, weather
conditions, performance of our customers, access to equipment,
changes in laws and ability to execute transactions. Undue reliance
should not be placed upon forward-looking statements and we
undertake no obligation, other than those required by applicable
law, to update or revise those statements.
For more complete information about us you should read our
disclosure documents that we have filed with the United States
Securities and Exchange Commission (the "SEC") and the Canadian
Securities Administrators (the "CSA"). You may obtain these
documents for free by visiting EDGAR on the SEC website at
www.sec.gov or by visiting SEDAR on the CSA website at
www.sedar.com.
Contacts: North American Energy Partners Inc. Kevin Rowand
General Manager, Corporate Development & Investor Relations
(780) 969-5528 (780) 969-5599 (FAX)krowand@nacg.ca www.naepi.ca
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