Calfrac Announces Extension and Amendment of Credit Facilities
September 29 2023 - 5:00AM
Calfrac Well Services Ltd. ("Calfrac" or “the Company”)
(TSX-CFW) is pleased to announce that it has entered into
an agreement with a syndicate of Canadian financial institutions
which amends and extends its credit facilities (the “
Credit
Facilities”).
The principal amendments to the $250.0 million
Credit Facilities include, among others, the following items:
- an extension of
the maturity date from July 1, 2024 to the earlier of: (a) July 1,
2026 or (b) six months prior to the maturity of the Company’s 2020
Second Lien Notes on March 15, 2026;
- the syndicated
facility was increased from $205.0 million to $215.0 million and
the operating facility was decreased from $45.0 million to $35.0
million;
- removing the
borrowing base requirement and the Funded Debt to Capitalization
and Current Ratio covenants; and
- introducing an
Interest Coverage Ratio covenant of greater than 2.75:1:00 and a
Total Debt to EBITDA Ratio covenant of less than 4.00:1:00. As at
June 30, 2023 the Interest Coverage Ratio and Total Debt to EBITDA
ratio from continuing operations would have been 7.93:1.00 and
1.04:1.00, respectively.
The Company’s banking syndicate is now led by
HSBC Bank Canada and ATB Financial, as Co-Lead Arrangers and Joint
Bookrunners, with HSBC Bank Canada serving as sole Administrative
Agent. The syndicate also includes The Toronto-Dominion Bank and
Canadian Western Bank.
Calfrac’s Chief Financial Officer, Mike Olinek,
commented: “We are pleased to report an extension of the Company’s
Credit Facilities with a newly configured lending syndicate
consisting of four major financial institutions. As Calfrac expects
its operations in North America and Argentina to continue to
perform well during this upcycle, management remains focused on
expanding profit margins, reducing long-term debt and improving its
asset quality. This two-year extension of the Company’s Credit
Facilities is a significant step towards executing on Calfrac’s
strategy in the face of sustained business growth and an improving
outlook.”
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 with continuing operations
focused throughout western Canada, the United States and Argentina.
During the first quarter of 2022, management committed to a plan to
sell its Russian division, resulting in the associated assets and
liabilities being classified as held for sale and presented in the
Company’s financial statements as discontinued operations.
For further
information please contact: |
|
Pat
Powell |
Michael
Olinek |
Chief Executive Officer |
Chief Financial Officer |
Telephone: (403) 266-6000 |
Telephone: (403) 266-6000 |
Fax: (403) 266-7381 |
Fax: (403) 266-7381 |
|
|
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, this press release contains forward-looking
statements relating to the Company’s operational and financial
outlook and 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,
including, but not limited to, the following: the economic and
political environment in which the Company operates, including the
anticipated impacts of inflation on the Company’s operations and
demand for its services; the Company’s expectations for its current
and prospective customers’ capital budgets, schedule and
geographical areas of focus; the seasonal weather patterns
affecting the Company’s operations; industry equipment levels; the
effect of competition on the Company’s ability to retain current
clients and obtain new ones; the effect of environmental, social
and governance factors on customer and investor preferences and
capital deployment; the Company’s existing contracts and the status
of current negotiations with key customers and suppliers; the
continued effectiveness of cost reduction measures instituted by
the Company; the Company’s ability to obtain and retain qualified
staff; the Company’s future capital expenditures and sources of
financing thereof; the effect of the military conflict in the
Ukraine and related Canadian, U.S. and international sanctions
involving Russia and counter-sanctions by Russia on the broader
markets for the Company’s services; and the likelihood that the
current tax and regulatory regime will remain substantially
unchanged.
The Company’s actual results could also differ
materially from those anticipated in these forward-looking
statements due to the risk factors set forth under the heading
“Risk Factors” in Calfrac’s Annual Information Form for the year
ended December 31, 2022 dated March 16, 2023 and under the heading
“Business Risks” in Calfrac’s Management’s Discussion and Analysis
for the year ended December 31, 2022 dated March 16, 2023, which
are available at www.sedarplus.ca and are incorporated herein by
reference.
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