Business
High Arctic Announces New Credit Facility
May 9, 2011 (Canada NewsWire Group) -- /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FO...
About this update from High Arctic Energy Services Inc
[{"type":"text","content":"\n\n\n May 9, 2011 (Canada NewsWire Group) -- \n\n#ReleaseContent TABLE\n{\n BORDER-COLLAPSE: collapse\n}\nTR.cnwUnderlinedCell TD\n{\n BORDER-BOTTOM: #000000 1px solid\n}\nTR.cnwDoubleUnderlinedCell TD\n{\n BORDER-BOTTOM: #000000 3px double\n}\nTR.cnwBoldUnderlinedCell TD\n{\n BORDER-BOTTOM: #000000 3px solid\n}\nTD.cnwUnderlinedCell\n{\n BORDER-BOTTOM: #000000 1px solid\n}\nTD.cnwDoubleUnderlinedCell\n{\n BORDER-BOTTOM: #000000 3px double\n}\nTD.cnwBoldUnderlinedCell\n{\n BORDER-BOTTOM: #000000 3px solid\n}\n#ReleaseContent TABLE.cnwBorderedTable TD\n{\n BORDER-RIGHT: black 1px solid;\n PADDING-RIGHT: 2px;\n BORDER-TOP: black 1px solid;\n PADDING-LEFT: 2px;\n PADDING-BOTTOM: 2px;\n BORDER-LEFT: black 1px solid;\n PADDING-TOP: 2px;\n BORDER-BOTTOM: black 1px solid;\n BORDER-COLLAPSE: collapse\n}\n#ReleaseContent TABLE TD\n{\n PADDING-RIGHT: 2px;\n PADDING-LEFT: 2px;\n PADDING-BOTTOM: 2px;\n PADDING-TOP: 2px\n}\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN\n THE UNITED STATES.  ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY\n CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW/\n\n\nRED DEER, AB, May 9 /CNW/ - High Arctic Energy Services Inc. (TSX: HWO)\n ("High Arctic" or the "Corporation") is pleased to announce that it has\n entered into a financing agreement with HSBC Bank Canada for new credit\n facilities to replace the existing senior credit facilities. The main\n components of the new credit facilities are a $20 million, two year\n committed term loan with a four year amortization, a $5 million demand\n revolving operating loan and a $5 million revolving evergreen loan. The\n $20 million was advanced to the Corporation on May 6, 2011.  The credit\n facilities are secured by all of the assets of High Arctic and by\n unlimited guarantees of its foreign subsidiaries.\n\n\nThe funds from the $20 million term loan, together with a cash payment\n of $3.7 million, were used to repay High Arctic's existing term loan on\n May 6, 2011.  The Corporation is required to make quarterly principal\n payments on the term loan of $1,250,000 beginning September 30, 2011.\n The term loan carries an annual interest rate of the bank's prime\n interest rate plus 1.75% and has a maturity date of June 30, 2013.\n\n\nThe $5 million demand revolving operating loan facility may be drawn t...