The Bank of Nova Scotia acted as lead arranger, sole bookrunner and administrative agent on an amendment to Trican Well Service’s revolving credit facility, including an upsize from $227.3 million to $275 million.
The amendment also included:
- A more flexible financial covenant package and simplified senior lending group structure
- A reduction in the interest rates and standby fees applicable in the pricing grid
- A 20-month extension of the maturity date from April 18, 2020 to December 5, 2021
- An uncommitted $50 million accordion feature, subject to the satisfaction of certain conditions set forth in the agreement
Tricon concurrently paid in full all outstanding senior and subordinated notes of approximately $44 million, which included early repayment costs of $3.2 million. The senior notes had maturities ranging from April 2021 to September 2024, interest rates ranging from 5.5% to 9% and were subject to substantially the same covenant structure as the existing revolver.
Trican used a combination of cash-on-hand and capacity on its existing revolving credit facility to facilitate the payment. Excluding capital lease providers, the bank lenders are now Trican’s sole senior debt holder.
The amended revolver is still comprised of six banks – all of which were participants in the previous facility. Trican will pay customary fees and expenses at prevailing market rates to the lending syndicate as a condition of this amendment.
Headquartered in Calgary, Alberta, Trican Well Service provides a comprehensive array of specialized products, equipment and services that are used during the exploration and development of oil and gas reserves.