Cordy Obtains Loan
June 09 2014 - 6:01PM
Marketwired
Cordy Obtains Loan
CALGARY, ALBERTA--(Marketwired - Jun 9, 2014) - Cordy Oilfield
Services Inc. ("Cordy" or the "Corporation") (TSX-VENTURE:CKK)
announces that it has entered into a loan and security agreement
with Nations Fund I, LLC (the "Lender"), an arm's length lender,
pursuant to which it may borrow the maximum amount of $12.5 million
(the "Loan").
An initial advance of the Loan in the amount $10.25 million (the
"Initial Advance") was obtained by Cordy today. At Cordy's option,
and subject to the satisfaction of certain conditions precedent set
out in the loan agreement, up to an additional $2.25 million may be
borrowed. A security interest in certain of Cordy's equipment was
provided to the Lender. The Loan is due and payable on June 9, 2020
and bears interest at the rate of 12% per annum.
The amount of $600,000 (the "Holdback") was held back from the
Initial Advance and deposited with Cordy's legal counsel, as escrow
agent. The Holdback is releasable to Cordy upon the satisfaction of
certain conditions related to Cordy's fixed charge coverage.
Cordy used a portion of the proceeds of the Loan to repay all
indebtedness owed to its former principal lender. The balance of
the proceeds will be used to pay transaction expenses and for
general working capital.
Additional information on Cordy is available on our website
www.cordy.ca or on SEDAR at www.sedar.com.
Forward-Looking
Statements
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", "should",
"believe", "plans", "intends" and similar expressions are intended
to identify forward-looking information or statements. All
statements included herein, other than statements of historical
fact, constitute forward-looking information and such information
involves various risks and uncertainties. There can be no assurance
that such information will prove to be accurate, and actual results
and future events could differ materially from those anticipated in
such information. A description of certain assumptions used to
develop such forward-looking information and a description of risk
factors that may cause actual results to differ materially from
forward-looking information can be found in the Corporation's
disclosure documents on the SEDAR website at www.sedar.com. The
Corporation does not undertake to update any forward-looking
information except in accordance with applicable securities
laws.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
For general or investor relations information,please
contact:David Mullen, Chairman and CEO(403) 266-2067(403)
266-2087dmullen@cordy.cawww.cordy.ca
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