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Cathedral Energy Services Ltd. Announces New Credit Facility
Cathedral Energy Services Ltd. Announces New Credit Facility Canada NewsWire CAL...
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[{"type":"text","content":"\n\n\n\nCathedral Energy Services Ltd. Announces New Credit Facility\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, Dec. 12, 2017\n\n\n\n/NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/\n\n\n\nCALGARY, Dec. 12, 2017 /CNW/ - Cathedral Energy Services Ltd. (TSX:CET) (\"Cathedral\" or the \"Company\") announces that it is entering into a new credit facility with Alberta Treasury Branches as Agent and including Alberta Treasury Branches and Export Development Canada as lenders.   \n\nUnder the new two year facility, expiring December 31, 2019, Cathedral's credit availability will be $20 million consisting of a $5 million operating facility and $15 million extendible revolving credit facility.  The key financial covenants associated with the new facility include a maximum Funded Debt to Bank EBITDA Ratio (as defined in the facility) of 3.0 to 1.0 and an Interest Coverage Ratio (as defined in the facility) of not less than 2.50 to 1.0, both of which are calculated quarterly.\n\nCathedral's previous credit facility provided for availability of $23 million. Cathedral elected to reduce the facility size compared to the previous facility to reduce standby and other fees.  As at the date hereof, Cathedral had not drawn on either the previous or new credit facility and as at September 30, 2017, the Company had $4 million of cash. \n\nThe new credit facility is expected to be in place by December 31, 2017.  Full details regarding the new facility will be available on SEDAR under the Company's SEDAR profile at www.sedar.com.\n\nCathedral 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. We work in p...