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Ensign Provides Update on Credit Facility and 2021 Capital Expenditure Plan
Ensign Provides Update on Credit Facility and 2021 Capital Expenditure Plan Can...
About this update from Ensign Energy Services Inc.
[{"type":"text","content":"\n \n \n \n Ensign Provides Update on Credit Facility and 2021 Capital Expenditure Plan\n \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 Canada NewsWire\n \n \n \n \n CALGARY, AB,\n \n Dec. 31, 2020\n \n /CNW/ - Ensign Energy Services Inc. (\"\n \n Ensign\n \n \" or the \"\n \n Company\n \n \") (TSX: ESI) continues to deliver on 2020 priorities of balance sheet and liquidity preservation amidst a turbulent operating environment.\n \n \n On\n \n December 31, 2020\n \n , the Company amended and extended the existing\n \n $900.0 million\n \n revolving credit facility agreement (the \"\n \n Credit Facility\n \n \") with its syndicate of lenders. The amendments and one-year extension provide Ensign with continued access to revolver capacity and near-term flexibility in a volatile oil price environment.\n \n \n The amendments to the Credit Facility include revisions to the financial covenants as follows:\n \n \n \n The elimination of the Consolidated Total Debt to Consolidated EBITDA ratio and replacement with a minimum Consolidated EBITDA requirement of\n \n $140.0 million\n \n .\n \n \n The Consolidated EBITDA to Consolidated Interest Expense ratio shall not be less than: (i) 1.75:1.00 for the Fiscal Quarter ending\n \n December 31, 2020\n \n , (ii) 1.50:1.00 for the Fiscal Quarters ending\n \n March 31, 2021\n \n ,\n \n June 30, 2021\n \n , and\n \n September 30, 2021\n \n , (iii) 1.75:1.00 for the Fiscal Quarter ending\n \n December 31, 2021\n \n , (iv) 2.00:1.00 for the Fiscal Quarter ending\n \n March 31, 2022\n \n , (v) 2.25:1.00 for the Fiscal Quarters ending\n \n June 30, 2022\n \n , and\n \n September 30, 2022\n \n , and (vi) 2.50:1.00 at any time thereafter.\n \n \n The Consolidated Senior Debt to Consolidated EBITDA ratio shall not exceed: (i) 3.50:1.00 for the Fiscal Quarter ending\n \n December 31, 2020\n \n , (ii) 4.00:1.00 for the Fiscal Quarters ending\n \n March 31, 2021\n \n ,\n \n June 30, 2021\n \n ,\n \n September 30, 2021\n \n , and\n \n December 31, 2021\n \n , (iii) 3.50:1.00 for the Fiscal Quarter ending\n \n March 31, 2022\n \n , (iv)...