Business
Calfrac Announces Deferral of Interest Payment
Calfrac Announces Deferral of Interest Payment Canada NewsWire CALGARY, AB, June...
About this update from Calfrac Well Services Ltd.
[{"type":"text","content":"\n\n\n\nCalfrac Announces Deferral of Interest Payment\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, June 15, 2020\n\n\n\nCALGARY, AB, June 15, 2020 /CNW/ - Calfrac Well Services Ltd. (\"Calfrac\" or the \"Company\") (TSX: CFW) is announcing that the Company has elected to defer the cash interest payment due on June 15, 2020 in respect of its outstanding 8.50% senior unsecured notes due 2026 (the \"Unsecured Notes\"), which were issued pursuant to an indenture dated May 30, 2018 (the \"Unsecured Notes Indenture\"). Under the terms of the Unsecured Notes Indenture, the Company has a 30 day grace period from the periodic interest payment date in order to make this cash interest payment before an event of default will occur. \nDuring this grace period, the Company will continue to work with its financial advisors, RBC Capital Markets, together with Perella Weinberg Partners LP and Tudor, Pickering, Holt & Co., to consider alternatives for addressing its capital structure.  \nWhile the Company is addressing its capital structure, its operations will continue as usual, with all obligations to customers, suppliers and employees being met in the ordinary course. Calfrac remains committed to continuing to provide safe and high quality services to its customer base.\nThe amount currently drawn on Calfrac's senior credit facilities is approximately $170 million, against a $375 million line of credit.   A failure to pay the cash interest payment due within the 30 day grace period would also be an event of default under Calfrac's credit agreement governing its senior credit facilities; and under the indenture governing the Company's second lien notes due 2026.  An event of default carries the risk of the principal amount of the indebtedness and all accrued interest becoming immediately due and payable.\nThe Company continues to be proactive in addressing the rapid and unforeseen deterioration in 2020 business conditions that has resulted from the COVID-19 global pandemic and the oil price war among OPEC+ members. &#...