CWC Energy reduces credit facility to C$75 million, amends covenants

By Wendy Van Sickle

Columbus, Ohio, Nov. 25 – CWC Energy Services Corp. reduced its credit facility to C$75 million and amended some financial covenants, according to a press release.

The total operating and syndicated facility was reduced by C$25 million from C$100 million, but the committed amount remains at C$125 million, with a C$50 million accordion available with the banking syndicate’s approval.

The consolidated debt to EBITDA ratio changed to 5.0 to 1 for Dec. 31, increasing to 5.25 to 1 for March 31 and June 30, 2016 and to 5.5 to 1 for Sept. 30, 2016, then decreasing to 5.0 to 1 for Dec. 31, 2016 and to 3.0 to 1 thereafter.

The company is now required to maintain a minimum liquidity of at least C$12.5 million undrawn under the credit facility.

The company also announced Wednesday that “given the current uncertainty in the oilfield services sector” its board of directors has suspended its quarterly dividend.

The credit facility amendments will “allow management to focus on continuing to improve our cost structure, provide quality service to our customers and pursue growth opportunities for the benefit of our shareholders,” the release states.

CWC Energy Services is a contract drilling and well servicing company based in Calgary, Alta.

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