Cathedral Energy Services Announces Credit Facility Amendments and Extension
/NOT FOR DISSEMINATION IN
- Maturity is extended to
June 30, 2022;
- Reduction in Facility to
- Consolidated funded debt to consolidated EBITDA (as defined in the Facility) ratio is waived from 2020 Q2 through 2021 Q1 (the "covenant relief period");
- Consolidated interest coverage ratio is waived during the covenant relief period if funded debt is no more than
- New funded debt to tangible net worth ("TNW") ratio is in place during the covenant relief period. This ratio is to be no more than 10% for 2020 Q2 and 2020 Q3 and no more than 15% in 2020 Q4 and 2021 Q1. TNW is defined as shareholders' equity plus subordinated debt less investments in or amounts owed by any related party which does not constitute subordinated debt;
- During the covenant relief period, advances under the Facility are limited to
- During the covenant relief period, aggregate capital expenditures (excluding non-cash utilization of existing inventory) for the fiscal year ended
December 31, 2020, are not to exceed $2 million;
- Advances under the Facility will bear interest at the financial institution's prime rate plus 1.75% to 3.25% or bankers' acceptance rate plus 3.00% to 4.25% with interest payable monthly, depending upon the consolidated funded debt to consolidated EBITDA ratio; and
- The Borrower has a one-time option to exit the covenant relief period.
Under the revised Facility, Alberta Treasury Branches will be the sole lender.