Daily News: August 29, 2016

Scotiabank, NBF Downsize Cathedral Energy Facility

Cathedral Energy Services amended its credit facility with The Bank of Nova Scotia (BNS) and National Bank of Canada (NBF). Export Development Canada (EDC) joined Cathedral’s banking syndicate with the result that Cathedral’s credit facility availability has increased from that disclosed in Cathedral’s Q2/16 financial statements and the credit facility commitments from BNS and NBF have decreased.

Under the amended facility, Cathedral’s credit facility availability is now $36 million reducing to $33 million by December 31, 2016 and $28 million by March 31, 2017. At June 30, 2016, Cathedral’s total draw on its credit facility was $27.3 million and the company had cash balances of $2.2 million.

Cathedral reduced its bank debt 48% from $56.8 million at December 31, 2014. The lenders also have agreed to extend the maturity of Cathedral’s credit facility to November 2017.

Cathedral initiated a process to identify, examine and consider a range of strategic alternatives available to the company, with a view to maximize shareholder value. For the purposes of considering strategic alternatives, Cathedral established a special committee of independent directors, which retained FirstEnergy Capital as its financial advisor in connection with this review of strategic alternatives.

Export Development Canada (EDC) is Canada’s export credit agency. EDC’s mandate is to support and develop Canada’s trade, and the capacity of Canadian companies to participate in and respond to international business opportunities.

Calgary, AB-based Cathedral Energy Services is a partner to North American energy companies requiring high performance directional drilling services and dependable flowback and production testing solutions.