The new facility, which replaces ENSERVCO’s former credit agreement with PNC Bank, provides lower-cost and more comprehensive debt financing.
The new credit agreement has a three-year term that expires in August of 2020. Borrowings under the agreement will be classified as long-term and are secured by the company’s equipment fleet and accounts receivable.
“We are very pleased with the favorable terms of our new credit agreement, which will increase our financial flexibility and help us capitalize on our considerable potential to expand our operations in a recovering energy environment,” said Ian Dickinson, CEO of ENSERVCO. “East West Bank is a high quality senior lender, and their team worked very hard to understand our business. With a new executive management team and a new banking relationship, ENSERVCO is well positioned to execute its growth strategy.”
Denver-based ENSERVCO provides a wide range of oilfield services, including hot oiling, acidizing, frac water heating, water transfer, bacteria and scaling treatment and water hauling.