/NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/
CALGARY, AB, June 29, 2020 /CNW/ - Cathedral Energy
Services Ltd. (TSX: CET) ("Cathedral" or the "Company") confirms
that the amendments to its existing credit facility (the
"Facility") which were announced in Cathedral's June 24, 2020 press release are now in force and
effective as June 29, 2020. The
amendments to the Facility include the following changes:
- Maturity is extended to June 30,
2022;
- Reduction in Facility to $12
million;
- Consolidated funded debt to consolidated EBITDA (as defined in
the Facility) ratio is waived from 2020 Q2 through 2021 Q1 (the
"covenant relief period");
- Consolidated interest coverage ratio is waived during the
covenant relief period if funded debt is no more than $6 million;
- New funded debt to tangible net worth ("TNW") ratio is in place
during the covenant relief period. This ratio is to be no more than
10% for 2020 Q2 and 2020 Q3 and no more than 15% in 2020 Q4 and
2021 Q1. TNW is defined as shareholders' equity plus subordinated
debt less investments in or amounts owed by any related party which
does not constitute subordinated debt;
- During the covenant relief period, advances under the Facility
are limited to $10 million;
- During the covenant relief period, aggregate capital
expenditures (excluding non-cash utilization of existing inventory)
for the fiscal year ended December 31,
2020, are not to exceed $2
million;
- Advances under the Facility will bear interest at the financial
institution's prime rate plus 1.75% to 3.25% or bankers' acceptance
rate plus 3.00% to 4.25% with interest payable monthly, depending
upon the consolidated funded debt to consolidated EBITDA ratio;
and
- The Borrower has a one-time option to exit the covenant relief
period.
Under the revised Facility, Alberta Treasury Branches will be
the sole lender.
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.
SOURCE Cathedral Energy Services Ltd.