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Cathedral Energy Services Provides Update on its Credit Facility
Cathedral Energy Services Provides Update on its Credit Facility Cathedral Energy ...
About this update from Act Energy Technologies Ltd.
[{"type":"text","content":"\n\n\n\nCathedral Energy Services Provides Update on its 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\nCathedral Energy Services Provides Update on its Credit Facility\nCanada NewsWire\nCALGARY, July 4, 2016\n\n\n\n/NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/\n\n\n\nCALGARY, July 4, 2016 /CNW/ - Cathedral Energy Services Ltd. (TSX:CET) (\"Cathedral\") announces it is currently in discussions with The Bank of Nova Scotia and National Bank of Canada (the \"Lenders\") regarding proposed amendments to its credit facility.  The amendment to Cathedral's credit facility is being contemplated in the context of the prolonged industry downturn which has negatively impacted oil and gas service company activity levels.  Cathedral expects to announce the terms and conditions of the amendments if any, on or prior to, the release of Cathedral's second fiscal quarter on August 10, 2016.\n\nWaiver of Covenants\n\nIn connection with the above, the Lenders have revised the Q2 cumulative minimum EBITDA requirement for the two quarters ending June 30, 2016 to $100,000 from $1.6 million.  In addition, Cathedral's total available credit facility has been reduced to $70 million from $80 million (including a $35 million accordion feature).  \n\nContinued Repayment of Debt\n\nAs of June 30, 2016 the total drawn facility was $27.3 million, which included a $0.8 operating loan, a $25 million term loan and $1.5 million in letters of credit.  This compares to a total drawn facility of $34.0 million as at December 31, 2015.\n\nFORWARD-LOOKING INFORMATION\n\nThis press release contains certain statements or disclosures relating to Cathedral that are based on the expectations of Cathedral as well as assumptions made by and information currently available to Cathedral which may constitute forward-looking information under applicable securities laws. In particular, the statement related to expects to announce the terms and conditions of amendments may contain forward-looking information. Many factors...