/NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/
CALGARY, Dec. 12, 2017 /CNW/ - Cathedral Energy Services
Ltd. (TSX:CET) ("Cathedral" or the "Company") announces that it is
entering into a new credit facility with Alberta Treasury Branches
as Agent and including Alberta Treasury Branches and Export
Development Canada as lenders.
Under the new two year facility, expiring December 31, 2019, Cathedral's credit
availability will be $20 million consisting of a $5 million operating facility and $15 million extendible revolving credit
facility. The key financial covenants associated with the new
facility include a maximum Funded Debt to Bank EBITDA Ratio (as
defined in the facility) of 3.0 to 1.0 and an Interest Coverage
Ratio (as defined in the facility) of not less than 2.50 to 1.0,
both of which are calculated quarterly.
Cathedral's previous credit facility provided for availability
of $23 million. Cathedral elected to
reduce the facility size compared to the previous facility to
reduce standby and other fees. As at the date hereof,
Cathedral had not drawn on either the previous or new credit
facility and as at September 30,
2017, the Company had $4
million of cash.
The new credit facility is expected to be in place by
December 31, 2017. Full details
regarding the new facility will be available on SEDAR under the
Company's SEDAR profile at www.sedar.com.
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. 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.
ADVISORY
This press release contains certain statements and information
relating to Cathedral and its new credit facility 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, statements related to the anticipated timing for the
new credit facility being in place and the anticipated terms of the
credit facility may constitute forward‐looking information.
Cathedral's actual results could differ materially from those
anticipated in these forward-looking statements and information as
a result of assumptions proving inaccurate and of both known and
unknown risks, including the risk that the timing of the credit
facility availability and/or terms of the credit facility change
for any reason. 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.
SOURCE Cathedral Energy Services Ltd.