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SECURE Energy Services Increases Credit Facility to $700 Million

September 30, 2014, 07:06 AM
Filed Under: Energy Services

SECURE Energy Services Inc. announced it has entered into an amended and restated $700 million syndicated credit facility ("Syndicated Facility") with a syndicate of ten financial institutions and Canadian Chartered banks.

The Syndicated Facility consists of a $675 million extendible revolving term credit facility and a $25 million revolving operating facility that replaces the Corporation's $400 million syndicated facility. The Syndicated Facility can be expanded to $800 million through the exercise of an additional $100 million accordion feature, available upon request by the Corporation subject to review and approval by the lenders.

The Syndicated Facility is a four year, committed facility with an initial maturity date of September 26, 2018 and is extendable annually, at the Corporation's request, provided that the maturity date associated with the granting of the extension does not exceed four years. The facility is secured by substantially all of the Corporation's assets and includes customary terms, conditions and covenants, including that the consolidated senior funded debt to EBITDA ratio does not exceed 3.50 to 1.00, the consolidated total funded debt to EBITDA ratio does not exceed 5.00 to 1.00 and the consolidated EBITDA to financing charges ratio is not less than 2.50 to 1.00.

Amounts borrowed under the Syndicated Facility will bear interest at the Corporation's option of either the Canadian prime rate plus 0.45% to 2.00% or the banker acceptance rate plus 1.45% to 3.00%, depending, in each case, on the ratio of consolidated senior funded debt to EBITDA.

SECURE is a TSX publicly traded energy services company that provides safe and environmentally responsible fluids and solids solutions to the oil and gas industry.

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