CALGARY, AB, Nov. 25, 2021 /CNW/ - Calfrac Well Services Ltd.
("Calfrac" or the "Company") (TSX: CFW) is pleased to
announce that it has executed an agreement with its lenders which
amends and increases its credit facilities (the "Credit
Facilities"). The amendments to the Credit Facilities include
the following key items:
- the exercise of the accordion feature to increase the
syndicated facility by $25.0 million
to $205.0 million, which together
with the $45.0 million operating
facility, increases the capacity of the Credit Facilities to
$250.0 million and provides
additional liquidity;
- the addition of Canadian Western Bank to the lending syndicate;
and
- the lenders' approval of a capital budget of up to $70.0 million for 2021.
Concurrent with these amendments, Calfrac's board of directors
approved a further increase in the Company's 2021 capital budget
from $61.0 million to $70.0 million in order to support the growth of
its North American operations throughout the course of 2021 and
into 2022.
Calfrac's Chief Financial Officer, Mike
Olinek, commented: "We are pleased to report the increase to
our Credit Facilities and the addition of Canadian Western Bank to
our lending syndicate. The increase in our Credit Facilities
provides additional financial flexibility in order to advance our
strategy in the context of an improving business environment, while
the increase to our capital program will ensure that the Company's
fleet is maintained to our high standards and positions Calfrac to
take advantage of the increase in activity that is anticipated for
2022."
Calfrac's common shares and warrants are publicly traded on the
Toronto Stock Exchange under the trading symbols "CFW" and
"CFW.WT", respectively.
Calfrac provides specialized oilfield services to exploration
and production companies designed to increase the production of
hydrocarbons from wells drilled throughout western Canada, the United
States, Argentina and
Russia.
This press release contains forward-looking statements and
forward-looking information within the meaning of applicable
securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "may", "will", "project",
"should", "believe", "plans", "intends" and similar expressions are
intended to identify forward-looking information or statements.
More particularly and without limitation, this press release
contains forward-looking statements and information relating to
Calfrac's liquidity, capital budget, business environment and
financing strategy.
These forward-looking statements and information are based on
certain key expectations and assumptions made by Calfrac in light
of its experience and perception of historical trends, current
conditions and expected future developments, as well as other
factors it believes are appropriate in the circumstances. Although
Calfrac believes that the expectations and assumptions on which
such forward-looking statements and information are based are
reasonable, undue reliance should not be placed on the
forward-looking statements and information, as Calfrac cannot give
any assurance that they will prove to be correct. Since
forward-looking statements and information address future events
and conditions, by their very nature they involve inherent risks
and uncertainties. Actual results could differ materially from
those currently anticipated due to a number of factors and risks.
These include, but are not limited to, risks associated with:
Calfrac's ability to continue to manage the effect of the COVID-19
pandemic on its operations; actions taken by Wilks Brothers, LLC;
decisions by securities regulators and/or the courts; default under
the Company's credit facilities and/or the Company's senior secured
notes due to a breach of covenants therein; failure to reach any
additional agreements with the Company's lenders; the impact of
events of default in respect of other material contracts of the
Company, including but not limited to, cross-defaults resulting in
acceleration of amounts payable thereunder or the termination of
such agreements; failure to receive any applicable regulatory,
court, third party and other stakeholder approvals or decisions in
respect of the Recapitalization Transaction or the court orders
granting enforcement thereof; global economic conditions; along
with those risk and uncertainties identified under the heading
"Risk Factors" and elsewhere in the Company's annual information
form dated March 26, 2021, as filed
on SEDAR at www.sedar.com.
The forward-looking statements and information contained in this
press release are made as of the date hereof and Calfrac does not
undertake any obligation to update publicly or revise any
forward-looking statements or information, whether as a result of
new information, future events or otherwise, unless so required by
applicable securities laws. This press release is not an offer of
securities for sale in the United
States. Securities may not be offered or sold in
the United States absent an
exemption from registration under the Securities Act of 1933.
SOURCE Calfrac Well Services Ltd.