Business
Source Energy Services Announces Decision To Utilize Interest Payment Grace Period
(TheNewswire) Calgary, Alberta – TheNewswire - (May 16, 20...
About this update from Source Energy Services Ltd.
[{"type":"text","content":"Source Energy Services Announces Decision To Utilize Interest Payment Grace Period\n \n \n (TheNewswire)\n \n \n \n \n \n \n \n \n \n \n \n Calgary, Alberta –\n \n \n TheNewswire -\n \n \n (May\n16, 2022)\n \n \n (\n \n \n TSX:SHLE\n \n \n )\n \n \n -\n \n \n Source Energy\nServices\n \n \n \n \n Ltd.\n \n \n (“Source”\nor the “Company”) announced today that it has elected to utilize\nthe 30-day grace period (the “Grace Period”) under the indenture\ngoverning its 10.5% senior secured first lien notes due March 15,\n2025 (the “Senior Notes”). The Company is utilizing the Grace\nPeriod to permit the continuation\n \n \n and\nconclusion\n \n \n of discussions with the syndicate of\nlenders under its senior secured credit facility (the “Credit\nFacility”) to obtain a waiver from such lenders related to the\npayment of the cash interest payment due on May 16, 2022, in\nconnection with the Senior Notes (the “May Interest\nPayment”). The Company does not expect to utilize the Grace Period\nin its entirety and anticipates concluding its discussions with the\nlenders imminently.\n \n \n \n While the Company has not disbursed the CAD $4.2 million May Interest\nPayment, the Company has ample liquidity available to fund the\ndisbursement, with $18.9 million of liquidity available as of the date\nof this release. The Company is current with all its suppliers,\nindustry partners and contractors and intends to remain so. Neither\nthe utilization of any portion of the Grace Period nor the terms of\nthe waiver contemplated would affect any of the Company’s\noperations, or commercial obligations.\n \n \n The election to not make the May Interest Payment on the scheduled\ndate does not constitute an event of default under the indenture that\ngoverns the Senior Notes, or the credit agreement that governs the\nCredit Facility, until the expiry of the Grace Period.\n \n \n \n \n ABOUT SOURCE ENERGY SERVICES\n \n \n \n Source is a company that focuses on the integrated\nproduction and distribution of high quality frac sand, as well as the\ndistribution of other bulk completion materials not produced by\nSource. Source provides its customers with an end-to-end solution for\nfrac sand supported by its Wisconsin and Peace River mines and\nproc...