STEP Energy Services entered into a fourth amended and restated credit agreement with a syndicate of Canadian banks, which amends and extends its prior credit agreement. The credit agreement includes the following principal terms:
- A CAD $200 (USD $148) million syndicated facility, a CAD $15 (USD USD $11.1) million operating facility and a USD $15 million operating facility
- A three-year term with a maturity date of Sept. 27, 2027
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The financial covenants in the credit agreement are as follows:
- Funded Debt to EBITDA Ratio: not more than 3.00:1.00, calculated quarterly on the last day of each fiscal quarter on a rolling four quarter basis
- Interest Coverage Ratio: at least 3.00:1.00, calculated quarterly on the last day of each fiscal quarter on a rolling four quarter basis
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STEP’s banking syndicate is led by ATB Financial as administrative agent, co‑lead arranger and co‑bookrunner and the Canadian Imperial Bank of Commerce as syndication agent, co‑lead arranger and co‑bookrunner. The syndicate also includes the Bank of Montreal, the Bank of Nova Scotia, Royal Bank of Canada and the Toronto Dominion Bank. STEP will pay customary fees and expenses at prevailing market rates to the lending syndicate as a condition of the amendment.
