Calfrac sees credit facilities extension, amendment

Calfrac Well Services Ltd. (TSX–CFW) has entered into an agreement with its lenders which amends and extends its credit facilities. The principal amendments to the credit facilities include, among others, the following items:

  • an extension of the maturity date from September 27, 2018 to June 1, 2020;
  • a voluntary reduction in the credit facilities from $300 million to $275 million;
  • the continued inclusion of the equity cure provision which permits the previously funded equity cure to be utilized at any time prior to the extended maturity date, subject to the same conditions which were included in the December 2015 amendments;
  • a reduction in the maximum funded debt-to-EBITDA ratio to 3.0x;
  • the continued inclusion of a borrowing base which limits advances under the credit facilities based on North American accounts receivable, cash on hand and fixed asset values;
  • the removal of the pricing levels which were added in the December 2015 amendments, although provision was made for increased pricing of up to 100 basis points during periods where the net total debt-to-EBITDA ratio exceeds 5.0x; and
  • a prohibition on utilizing advances under the credit facilities to redeem or repay subordinated debt while net total debt-to-EBITDA exceeds 5.0x. 

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