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High Arctic Energy Services Announces Amendments to Credit Facilities, Issuance of Warrants and Amendments to Previously Issued Warrants
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FA...
About this update from High Arctic Energy Services Inc
[{"type":"text","content":"\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN\n\n\nTHE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY\n\n\nCONSTITUTE A VIOLATION OF U.S. SECURITIES LAW/\n\n\nRED DEER, AB, June 6 /CNW/ - High Arctic Energy Services Inc. ("High\nArctic" or the "Corporation") announced today that it has negotiated\nextensions to its existing credit facilities to March 31, 2009.\n\n\nThe Corporation has a revolving credit facility composed of a $20-million\nrevolving loan ("Facility A") and a $100-million equipment based revolving\nloan ("Facility B"). In addition, the Corporation has a $20 million bridge\nloan facility (the "Bridge Loan"). The Corporation currently owes\napproximately $6.8 million on Facility A, $99.3 million on Facility B and\n$20 million on the Bridge Loan (the aggregate amounts owing on Facility A,\nFacility B and the Bridge Loan are herein referred to as the "Consolidated\nDebt"). Accordingly, the Corporation's Consolidated Debt is approximately\n$126.1 million. The revolving term period under the credit facility was\nscheduled to end on June 30, 2008 and the Bridge Loan was to mature on that\ndate.\n\n\nThe extension signed today provides the Corporation with time to execute\nits business plan and reduce its debt leverage through the repayment of debt\nwith the proceeds of asset sales. The main terms of the extension can be\nsummarized as follows:\n\n\n1. The revolving term period has been extended to March 31, 2009 after\n\n\nwhich the outstanding principal will become repayable over a 36-month\n\n\nperiod. The maturity date of the Bridge Loan has also been extended to\n\n\nMarch 31, 2009.\n\n\n2. High Arctic has committed to reduce the Consolidated Debt by at least\n\n\n$50 million through the sale of assets to be completed by January 31,\n\n\n2009. The sales must be completed at defined intervals so that 25% is\n\n\ncompleted by July 31, 2008, 50% is completed by September 30, 2008 and\n\n\n75% is completed by November 30, 2008.\n\n\n3. The financial covenant ratios have been adjusted to reflect, among\n\n\nother things, the earnings projections. In general terms, the ratios for\n\n\n2008 were based on a Consolidated EBITDA, as updated under the revolving\n\n\ncredit facility agreement (which generally means the a...