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AKITA Announces Credit Facility Amendments
AKITA Announces Credit Facility Amendments Canada NewsWire CALGARY, AB, July 20,...
About this update from Akita Drilling Ltd. Class A
[{"type":"text","content":"\n\n\n\nAKITA Announces Credit Facility Amendments\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\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, AB, July 20, 2020\n\n\n\nAKITA Drilling Ltd. (TSX: AKT.A)\n CALGARY, AB, July 20, 2020 /CNW/ - AKITA Drilling Ltd. (the \"Company\") announces it has entered into an amending agreement to its December 19, 2018 credit facility agreement (the \"Amended Facility\") with a syndicate of lenders comprised of ATB Financial, The Bank of Nova Scotia, HSBC Bank Canada and the Toronto-Dominion Bank (the \"Lenders\"). The Amended Facility includes adjustments to certain terms and conditions, including an adjustment to the borrowing base calculation, and provision of a five quarter covenant relief period, and revisions to the size of the credit facility. \n\n \n \n \n \n \n \n\n \nCovenant Relief PeriodA covenant relief period is available until June 30, 2021 (the \"Covenant Relief Period\") and provides as follows:\nThe Funded Debt to EBITDA ratio has been replaced with a Funded Debt to Tangible Net Worth Ratio as follows:For the fiscal quarter ended June 30, 2020 Funded Debt to Tangible Net Worth Ratio shall not be more than 0.50:1.00; and For the fiscal quarters ended September 30, 2020 to June 30, 2021 the Funded Debt to Tangible Net Worth Ratio shall not be more than 0.75:1.00.A minimum trailing twelve month EBITDA test will be required quarterly during the Covenant Relief Period, with EBITDA varying each period in line with agreed upon forecasts.The EBITDA to Interest ratio is amended to the following:For the fiscal quarter ended September 30, 2020 EBITDA to Interest Expense ratio shall not be less than 2.00:1.00; For the fiscal quarter ended December 31, 2020 EBITDA to Interest Expense Ratio shall not be less than 1.25:1.00; and For the fiscal quarters ended March 31, 2021 and June 30, 2021 the EBITDA to Interest Expense Ratio is waived.Upon the end of the Covenant Relief Period the Company's covenants revert back to:\nFunded Debt to EBITDA Ratio of not more than 3.00:1.00 EBITDA to Interest Expense Ratio of not less than 3.00:1.00AKITA has t...