/NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/
CALGARY, Aug. 29, 2016 /CNW/ - Cathedral Energy Services
Ltd. (TSX:CET) ("Cathedral" or the "Company") announces it has
negotiated certain amendments to its credit facility with The Bank
of Nova Scotia ("BNS") and
National Bank of Canada ("NBF")
(the "Amended Facility"). Export Development Canada ("EDC")
has joined Cathedral's banking syndicate with the result that
Cathedral's credit facility availability has increased from that
disclosed in Cathedral's Q2 financial statements and the credit
facility commitments from BNS and NBF have decreased.
EDC's support of Cathedral is part of a previously announced
program, whereby EDC earmarked financial capacity for Canadian
small and medium enterprises in the oil and gas sector. EDC
recognizes there are many companies across Canada with solid fundamentals that are
financially stressed as a result of the current commodity price
driven downturn. Cathedral was able to demonstrate to EDC they have
a strong export mandate and a business plan to manage through the
current sector challenges and achieve future growth.
Under the Amended Facility, Cathedral's credit facility
availability is now $36 million
reducing to $33 million by
December 31, 2016 and $28 million by March
31, 2017. At June 30,
2016, Cathedral's total draw on its credit facility was
$27.3 million and the Company had
cash balances of $2.2 million.
Cathedral has reduced its bank debt 48% from $56.8 million at December
31, 2014. The lenders have also agreed to extend the
maturity of Cathedral's credit facility to November 2017.
Further details on Cathedral's credit facility are outlined in the
Company's financial disclosure located at www.sedar.com.
Cathedral also announces it has initiated a process to identify,
examine and consider a range of strategic alternatives available to
the Company, with a view to maximizing shareholder value. Strategic
alternatives may include, but are not limited to, debt and/or
equity financings, joint venture or partnership transactions, the
sale of the Company or a portion of the Company's assets, a merger
or other such options as may be determined by the Company's Board
of Directors to be in the best interests of the Company and its
shareholders. For the purposes of considering strategic
alternatives, Cathedral has established a special committee of
independent directors ("the Special Committee"). The Special
Committee has retained FirstEnergy Capital Corp. as its financial
advisor in connection with this review of strategic
alternatives.
Cathedral does not intend to disclose developments with respect
to the strategic alternatives process unless and until the Board
has approved a definitive transaction or other course of action or
otherwise deems disclosure of developments is appropriate or
otherwise required by law. There are no guarantees that the process
will result in a transaction of any form or, if a transaction is
entered into, as to its terms or timing.
About EDC
Export Development Canada (EDC) is Canada's export credit agency. EDC's mandate
is to support and develop Canada's
trade, and the capacity of Canadian companies to participate in and
respond to international business opportunities. EDC's knowledge
and partnerships are used by more than 7,300 Canadian companies and
their global customers in more than 140 markets worldwide each
year. A Crown corporation accountable to Parliament through the
Minister of International Trade, EDC is financially self-sustaining
and a recognized leader in financial reporting and economic
analysis. For additional information visit www.edc.ca.
About Cathedral
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 and
dependable flowback and production testing solutions. 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.
FORWARD-LOOKING INFORMATION
This press release contains certain forward-looking statements
and forward-looking information (collectively referred to herein as
"forward-looking statements") within the meaning of applicable
Canadian securities laws. All statements other than statements of
present or historical fact are forward-looking statements.
Forward-looking statements are often, but not always, identified by
the use of words such as "anticipate", "achieve", "believe",
"plan", "intend", "objective", "continuous", "ongoing", "estimate",
"outlook", "expect", "may", "will", "project", "should" or similar
words suggesting future outcomes. In particular, this press release
contains forward-looking statements relating to, among other
things, Cathedral's anticipated credit facility availability as at
December 31, 2016 and March 31, 2017, the anticipated maturity date of
Cathedral's credit facility, the various forms of strategic
alternatives transactions that may be considered and/or approved by
Cathedral and the intended timing of future disclosure with respect
to development related to the strategic alternatives process.
Various material factors and assumptions are typically applied in
drawing conclusions or making the forecasts or projections set out
in forward-looking statements. Those material factors and
assumptions are based on information currently available to the
Company, including information obtained from third party industry
analysts and other third party sources. In some instances, material
assumptions and material factors are presented elsewhere in this
press release in connection with the forward-looking statements.
You are cautioned that the following list of material factors and
assumptions is not exhaustive. Specific material factors and
assumptions include, but are not limited to the performance of
Cathedral's businesses, including current business and economic
trends, oil and natural gas commodity prices and production levels,
and the ability of Cathedral to obtain and retain timely financing
on acceptable terms. Forward-looking statements are not a guarantee
of future performance and involve a number of risks and
uncertainties some of which are described herein. Such
forward-looking statements necessarily involve known and unknown
risks and uncertainties, which may cause the Company's actual
performance and financial results in future periods to differ
materially from any projections of future performance or results
expressed or implied by such forward-looking statements. These
risks and uncertainties include, but are not limited to, the risks
identified in the Company's Annual Information Form under the
heading "Risk Factors". Any forward-looking statements are made as
of the date hereof and, except as required by law, the Company
assumes no obligation to publicly update or revise such statements
to reflect new information, subsequent or otherwise. All
forward-looking statements contained in this press release are
expressly qualified by this cautionary statement. Further
information about the factors affecting forward-looking statements
is available in the Company's current Annual Information Form and
Annual Report which have been filed with Canadian provincial
securities commissions and are available on www.sedar.com.
SOURCE Cathedral Energy Services Ltd.