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Cathedral Energy Services provides update on its credit facility and initiation of strategic alternatives process
Cathedral Energy Services provides update on its credit facility and initiation of strateg...
About this update from Act Energy Technologies Ltd.
[{"type":"text","content":"\n\n\n\nCathedral Energy Services provides update on its credit facility and initiation of strategic alternatives process\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 and initiation of strategic alternatives process\nCanada NewsWire\nCALGARY, Aug. 29, 2016\n\n\n\n/NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/\n\n\n\nCALGARY, Aug. 29, 2016 /CNW/ - Cathedral Energy Services Ltd. (TSX:CET) (\"Cathedral\" or the \"Company\") announces it has negotiated certain amendments to its credit facility with The Bank of Nova Scotia (\"BNS\") and National Bank of Canada (\"NBF\") (the \"Amended Facility\").  Export Development Canada (\"EDC\") has joined Cathedral's banking syndicate with the result that Cathedral's credit facility availability has increased from that disclosed in Cathedral's Q2 financial statements and the credit facility commitments from BNS and NBF have decreased.\n\nEDC's support of Cathedral is part of a previously announced program, whereby EDC earmarked financial capacity for Canadian small and medium enterprises in the oil and gas sector.  EDC recognizes there are many companies across Canada with solid fundamentals that are financially stressed as a result of the current commodity price driven downturn. Cathedral was able to demonstrate to EDC they have a strong export mandate and a business plan to manage through the current sector challenges and achieve future growth.\n\nUnder the Amended Facility, Cathedral's credit facility availability is now $36 million reducing to $33 million by December 31, 2016 and $28 million by March 31, 2017.  At June 30, 2016, Cathedral's total draw on its credit facility was $27.3 million and the Company had cash balances of $2.2 million.  Cathedral has reduced its bank debt 48% from $56.8 million at December 31, 2014.  The lenders have also agreed to extend the maturity of Cathedral's credit facility to November 2017.  Further details on Cathedral's credit facility are outlined in the Compan...