Strad is pleased to announce that it has agreed with its syndicate of lenders to extend the maturity of its credit facilities by two years to September 29, 2020.
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES (“U.S.”)
CALGARY, Alberta, Oct. 02, 2017 (GLOBE NEWSWIRE) -- Strad Energy Services Ltd. (“Strad” or the “Company”) (TSX:SDY) is pleased to announce that it has agreed with its syndicate of lenders to extend the maturity of its credit facilities (the “Credit Facilities”) by two years to September 29, 2020, and to make certain other amendments thereto.
The extension of the maturity of the Credit Facilities as well as certain of the amendments will provide credit stability and access to capital to Strad in the management of its business during the current reduced commodity price environment. These amendments include a return to pre-covenant relief period maximum ratio of Funded Debt to EBITDA of 3.0:1 and a minimum ratio of Interest Expense to EBITDA of 3.0:1. The amendment to the financial covenants signifies the Company’s higher levels of positive cash flow and continued strong balance sheet position.
In addition, given the current level of debt outstanding, the Company has maintained the maximum amount of the Credit Facilities at $41.5 million plus $7 million USD. Strad continues to be focused on prudently managing its balance sheet, maintaining operating efficiencies gained over the past three years and delivering outstanding customer value.
Defined terms used herein with reference to the Company’s Credit Facilities have the meanings set forth in the Company’s Management Discussion and Analysis which can be found under the Company profile on SEDAR.
ABOUT STRAD ENERGY SERVICES LTD.
Strad is a North American energy services company that provides rental equipment and matting solutions to the oil and gas and energy infrastructure sectors. Strad focuses on providing complete customer solutions in Canada and the United States.
Strad is headquartered in Calgary, Alberta, Canada. Strad is listed on the Toronto Stock Exchange under the trading symbol “SDY”.