PNC Bank Provides ENSERVCO $40MM Facility
ENSERVCO announced it received approval from PNC Business Credit for a five-year, $40 million revolving credit facility, which will replace a prior revolving credit facility and term loan with PNC Bank that totaled $16 million.
The company intends to use the facility to fund approximately $7 million of its $16 million 2014 capital expenditure program and consolidate its existing PNC term loan and other equipment loans at a lower average interest rate. The remaining approximately $22 million will be available for future working capital needs. Availability under the facility is based on a percentage of the company’s eligible receivables, plus a percentage of the value of ENSERVCO’s service equipment as established by an independent valuation.
The new facility is expected to close in September, subject to customary due diligence and loan documentation.
Rick Kasch, president and CEO, said, “This facility will augment our strong operating cash flow and give us added financial flexibility as we pursue our active expansion strategy. It also illustrates the growing confidence PNC has in the strength of our business.”
Through its various operating subsidiaries, ENSERVCO is a provider of hot oiling, acidizing, frac-water heating and fluid management services.