CWC Energy amends, extends credit facilities, reduces to C$65 million

By Wendy Van Sickle

Columbus, Ohio, April 15 – CWC Energy Services Corp. amended its credit facilities, including extending their maturity to July 31, 2018 and voluntarily reducing their capacity to C$65 million from C$75 million, according to a press release.

The company will have the ability to increase the facilities by up to an additional C$60 million with lender consent through an accordion feature.

The amendment also reduced minimum liquidity to C$10 million from C$12.5 million.

Additionally, the quarterly consolidated debt to consolidated EBITDA ratio was changed to 5.5 times for the quarters ending June 30 and Sept. 30, stepping down to 5.25 times for the quarters ending Dec. 31, 2016 and March 31, 2017, to 4.75 times for the quarter ending June 30, 2017, to 4.5 times for the quarter ending Sept. 30, 2017, to 4 times for the quarter ending Dec. 31, 2017 and to 3.5 times thereafter.

The amendment also adds an equity cure provision that allows CWC to apply the proceeds of equity offerings in the calculation of consolidated EBITDA for purposes of its quarterly consolidated debt to consolidated EBITDA ratio until March 31, 2018, subject to some conditions.

The company said that it expects the amendments will allow it to be in compliance with the financial covenants of the credit facilities through maturity and that the increased financial flexibility will allow it “to focus on its business operations and strategic initiatives through a prolonged industry downturn.”

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

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