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Ensign Energy Services Inc. - Announces 2017 Capital Expenditure Budget and Amends and Extends Revolving Term Credit Agreement
Ensign Energy Services Inc. - Announces 2017 Capital Expenditure Budget and Amends and Ext...
About this update from Ensign Energy Services Inc.
[{"type":"text","content":"\n\n\n\nEnsign Energy Services Inc. - Announces 2017 Capital Expenditure Budget and Amends and Extends Revolving Term Credit Agreement\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, Dec. 30, 2016\n\n\n\nCALGARY, Dec. 30, 2016 /CNW/ - Ensign Energy Services Inc. (\"Ensign\" or the \"Company\", TSX: ESI) is pleased to announce that the 2017 capital expenditure budget has been approved by its Board of Directors at C$61 million. The 2017 capital budget reflects Ensign's current focus on retaining a strong balance sheet while making selective capital expenditures on a number of growth opportunities.\n\nThe Company also announces that effective December 28, 2016, the Company has amended and extended its revolving term credit agreement (the \"Agreement\"). Based on current and future capital requirements the Company has reduced the credit available under the Agreement to C$500 million and has amended certain financial covenants. The maturity date is October 3, 2018 and the financial covenants under the Agreement are:\n\n\nThe Consolidated Senior Debt (being the Company's bank debt and outstanding senior unsecured notes) to Consolidated EBITDA Ratio shall not exceed: (i) 4.00:1.00 as at the end of the Fiscal Quarters ending on December 31, 2016, March 31, 2017 and June 30, 2017, (ii) 3.75:1.00 as at the end of the Fiscal Quarters ending on September 30, 2017 and December 31, 2017, and (iii) 3.50:1.00 at any time thereafter; \nthe Consolidated Debt to Consolidated EBITDA Ratio shall not exceed: (i) 4.75:1.00 as at the end of the Fiscal Quarters ending on December 31, 2016, March 31, 2017 and June 30, 2017, (ii) 4.50:1.00 as at the end of the Fiscal Quarters ending on September 30, 2017 and December 31, 2017, and (iii) 4.25:1.00 at any time thereafter; \nthe Consolidated Debt to Consolidated Capitalization Ratio as at the end of any Fiscal Quarter shall not exceed 45%; and \nthe Consolidated EBITDA to Consolidated Interest Expense as at the end of any Fiscal Quarter shall not be less than 3.00:1.00.\n\nConsolidated EBITDA is defined under the Agreement...