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Source Energy Services Update on Refinancing Process and Receipt of Waiver of Cross Default from Lenders under its Credit Agreement
(TheNewswire) Calgary, Alberta – TheNewswire - September 15, 2022 – ...
About this update from Source Energy Services Ltd.
[{"type":"text","content":"Source Energy Services Update on Refinancing Process and Receipt of Waiver of Cross Default from Lenders under its Credit Agreement\n \n \n (TheNewswire)\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Calgary, Alberta –\n \n TheNewswire -\n \n September 15,\n2022 –\n \n (\n \n \n TSX:SHLE\n \n \n ) (OTC:SCEYF)\n \n – Source Energy Services Ltd. (together with its affiliates,\n“Source” or the “Company”) announces that it is in the\nadvanced stages of closing a new USD $60 million senior credit\nfacility. As noted in our news release of August 15, 2022, the Company\ndid not make the August 15, 2022, interest payment (the “August\nInterest Payment”) due on the senior secured first lien notes (the\n“Senior Notes”). Source has still not made the August Interest\nPayment as the Company continues to be prohibited under the terms of\nthe Company’s existing credit facility from doing so. The\nprohibition relates specifically to the Company not meeting a trailing\nfinancial test as a result of the Company’s financial results in the\nfourth quarter of 2021.\n \n \n Source has now exceeded the cure period for the non-payment of the\nAugust Interest Payment and is currently in default on the Senior\nNotes. The Company is in discussions with noteholders representing a\nsignificant portion of the outstanding principal of the Senior Notes,\nwho have expressed to Source that they are supportive of the\nCompany’s efforts to complete a refinancing of its credit facility.\nBased on such discussions, the Company does not expect the noteholders\nto take any immediate steps to accelerate repayment of the Senior\nNotes under the indenture that governs the Senior Notes. Upon closing\nof the new senior credit facility, the Company intends to pay the\nAugust Interest Payment. Further, the lenders under the Company’s\ncurrent credit facility have provided a conditional waiver on the\ncross default (the “Waiver”) arising from the default of the\nSenior Notes.\n \n \n The Waiver is effective until the earlier to occur of: (i) September\n21, 2022, and (ii) the date that the trustee appointed under the\nindenture governing the Senior Notes, or holders of not less than 25%\nof the aggregate principal amount of S...