CALGARY, AB, Dec. 20, 2021 /CNW/ - Ensign Energy Services Inc.
("Ensign" or the "Company") (TSX: ESI), announces it has amended
and extended the existing $900.0
million revolving credit facility agreement (the "Credit
Facility") with its syndicate of lenders. The amendments and
extension provide Ensign with continued access to revolver capacity
in this volatile commodity price environment.
The maturity date of the Credit Facility has been extended from
November 25, 2022 to the earlier of:
(i) six months prior to the maturity date of the Senior Notes dues
April 15, 2024; and (ii) November 25, 2024.
The financial covenants that are currently in place do not
change until the first quarter of 2023. The financial covenants
starting thereafter are:
The elimination of the minimum Consolidated EBITDA requirement
of $140.0 million and replacement
with a Consolidated Total Debt to Consolidated EBITDA ratio of
5.00:1.00 for the fiscal quarter ending March 31, 2023 and at any time thereafter.
The Consolidated EBITDA to Consolidated Interest Expense ratio
shall not be less than 2.50:1.00 for the fiscal quarter ending
March 31, 2023 and at any time
thereafter.
The Consolidated Senior Debt to Consolidated EBITDA ratio shall
not exceed: 2.50:1.00 for the fiscal quarter ending March 31, 2023 and at any time thereafter.
The full amended Credit Facility agreement will be made
available on www.sedar.com.
Ensign is a global leader in oilfield services, headquartered
out of Calgary, Alberta, operating
in Canada, the United States and internationally. We are
one of the world's top land-based drilling and well servicing
contractors serving crude oil, natural gas and geothermal
operators. Our premium services include contract drilling,
directional drilling, underbalanced and managed pressure drilling,
rental equipment, well servicing and production services. Please
visit our website at ensignenergy.com.
Ensign's Common Shares are publicly traded through the
facilities of the Toronto Stock Exchange under the trading symbol
ESI.
SOURCE Ensign Energy Services Inc.