CALGARY,
AB, Oct. 13, 2023 /CNW/ - Ensign Energy
Services Inc. ("Ensign" or "the Company") (TSX: ESI) is pleased to
announce the completion of a $369.0
million term credit facility (the "Term Facility") with its
syndicate of lenders. Concurrently, the Company has amended and
extended the existing $900.0 million
revolving credit facility agreement (the "Credit Facility") with
its syndicate of lenders.
The Term Facility matures three years after it is drawn and
provides Ensign exposure to favourable rate terms and leverages
near-term free cash flow generation. Ensign intends to use the
proceeds from the Term Facility and available liquidity to redeem
its outstanding 9.25% senior notes due April
15, 2024, on or before December 31,
2023. The Term Facility is subject to 30% amortization in
the first year, 30% amortization in the second year and 40%
amortization in the third year.
The maturity date of the Credit Facility has been extended for
three years to October 2026. The
amended and extended Credit Facility also provides Ensign with
continued access to revolver capacity and near-term flexibility in
a constructive market.
The amendments to the Credit Facility includes a reduction of
the facility by $50.0 million at the
end of the second quarter of 2024, a $75.0
million reduction at the end of the fourth quarter of 2024
and a further reduction of $75.0
million by the end of the second quarter of 2025. The final
size of the Credit Facility will be $700.0
million.
The Company reaffirms its debt reduction for 2023, targeted to
be approximately $200.0 million. As
of June 30, 2023, Ensign's Total
debt, net of cash, was reduced by $112.5
million since December 31,
2022. Furthermore, Ensign's target debt reduction for the
period beginning 2023 to the end of 2025 is approximately
$600.0 million. If industry
conditions change, this target could be increased or decreased.
The Term Facility and amended Credit Facility agreement will be
made available on www.sedarplus.com.
Cautionary Statements on
Forward-looking Information
Certain statements in this news release constitute
forward-looking statements or information (collectively referred to
herein as "forward-looking statements") within the meaning of
applicable securities legislation. Forward-looking statements
generally can be identified by the words "believe", "anticipate",
"expect", "plan", "estimate", "target", "continue", "could",
"intend", "may", "potential", "predict", "should", "will",
"objective", "project", "forecast", "goal", "guidance", "outlook",
"effort", "seeks", "schedule" or expressions of a similar nature
suggesting future outcome or statements regarding an outlook.
These forward-looking statements are subject to, and may be
affected by, numerous risks and uncertainties, some of which are
beyond Ensign's control. Risks that could cause or contribute to
these differences include the factors described in Ensign's public
reports and filings, which are available under Ensign's profile at
www.sedarplus.com. The forward-looking statements contained herein
are expressly qualified in their entirety by this cautionary
statement. The forward-looking information contained herein is
provided as at the date hereof and Ensign does not undertake
update, correct or revise any forward-looking statements as a
result of any new information, future events or otherwise, except
as may be required by applicable law.
About Ensign
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 and well servicing. Please visit our website at
www.ensignenergy.com.
Ensign's Common Shares are publicly traded though the facilities
of the Toronto Stock Exchange under the trading symbol ESI.
SOURCE Ensign Energy Services Inc.