Civeo completed its acquisition of 100% of the equity interests of Noralta Lodge.
According to a related 8-K filing, Royal Bank of Canada served as administrative agent for an amendment to Civeo’s credit facility to support the transaction. HSBC Canada and Scotiabank served as joint lead arrangers and co-syndication agents for the transaction.
Among other things, the amended credit facility:
- Extends the maturity date of the obligations thereunder by 18 months to November 30, 2020
- Reduces the permitted level of Civeo’s total leverage ratio (total debt to consolidated EBITDA) to a maximum of 4.50x for the Q1/18 and Q2/18, with further reductions to 4.25x in Q3/18, 3.75x in Q4/18 and 3.50x in the Q1/19 and thereafter
- Increases the amortization rate from 5% per annum to 10% per annum
- Relaxes certain of the covenants to provide greater flexibility, including to enhance Civeo’s ability to make acquisitions and to incur indebtedness
- Reduces revolving borrowing availability to a level more consistent with the expected needs, which will reduce undrawn commitment fees
_x000D_
_x000D_
_x000D_
_x000D_
_x000D_
Bradley J. Dodson, Civeo’s president and CEO, said, “We are pleased to close the acquisition of Noralta, strengthening our position as the partner of choice for our customers in the Canadian oil sands region. This represents an important milestone for Civeo. Looking ahead, we remain focused on generating free cash flow while delivering best in class service and strengthening our balance sheet and will continue to opportunistically pursue organic and inorganic growth opportunities to support these priorities.”
Civeo is a provider of workforce accommodations, logistics and facility management services to the natural resource industry, with prominent market positions in the Canadian oil sands and the Australian natural resource regions.
Noralta is an Alberta-based provider of remote accommodations to the Canadian oil sands region.
