CALGARY,
AB, Sept. 1, 2022 /CNW/ - CES Energy
Solutions Corp. ("CES" or the "Company") (TSX: CEU)
(OTC: CESDF) is pleased to announce that it has successfully
entered into a third amended and restated credit agreement dated
September 1, 2022 (the "Amended
and Restated Credit Agreement") with respect to its syndicated
and operating credit facilities (the "Credit Facility"). Led
by the Bank of Nova Scotia as
Agent and a syndicate including The Toronto-Dominion Bank, Bank of
Montreal, ATB Financial, and Wells
Fargo Bank, the total size of the increased Credit Facility is
approximately C$ equivalent $425.0
million consisting of a Canadian Syndicated Revolving
Facility of C$250.0 million, a
Canadian Operating Facility of C$20.0
million, a U.S. Syndicated Revolving Facility of
US$110.0 million, and a U.S.
Operating Facility of US$10.0
million. The Credit Facility is secured by substantially all
of the Company's assets and includes customary terms, conditions
and covenants.
The increase in the size of the Credit Facility is aligned with
the increased financial scale of the Company and the strength of
its balance sheet, thereby providing flexibility to support the
current and future liquidity requirements of the Company's growing
business.
Highlights of the Amended and Restated Credit
Agreement
- Total facility size increased from approximately C$ equivalent
$315.0 million to approximately C$
equivalent $425.0 million, to support
the Company's strong revenue growth trajectory and record financial
performance underpinned by key investments in working capital;
- U.S. facility increased from US$70.0
million to US$120.0 million,
comprised of a US$110.0 million
syndicated revolving facility and a US$10.0
million operating facility;
- Canadian facility increased from $225.0
million to $270.0 million,
comprised of a $250.0 million
syndicated revolving facility and a $20.0
million operating facility;
- Accordion feature of C$ equivalent $75.0
million, with the option to exercise on available capacity
under either the Canadian or U.S. Facility.
The remaining terms, conditions, and covenants of the Credit
Facility, including the maturity date of September 28, 2024, remain materially consistent
with the terms, conditions and covenants prior to the Amended and
Restated Credit Agreement. A redacted copy of the Amended and
Restated Credit Agreement will be available on CES' SEDAR profile
at www.sedar.com in accordance with National Instrument 51-102 –
Continuous Disclosure Obligations, as adopted by the
Canadian securities regulatory authorities.
CES is also pleased to announce that the amendment (the
"Amendment") to the trust indenture dated October 20, 2017 (the "Indenture") in
respect of the Company's 6.375% senior notes due October 21, 2024 (the "Notes") was
implemented pursuant to a fifth supplemental indenture effective
August 19, 2022. The details of
the Amendment were more particularly described in the Company's
press release on August 11, 2022 and
the consent fee in respect of the Amendment was paid to all holders
of the Notes on August 23, 2022.
About CES Energy Solutions Corp.
CES is a
leading provider of technically advanced consumable chemical
solutions throughout the lifecycle of the oilfield. This includes
solutions at the drill-bit, at the point of completion and
stimulation, at the wellhead and pump-jack, and finally through to
the pipeline and midstream market. CES' business model is
relatively asset light and requires limited re-investment capital
to grow. As a result, CES has been able to capitalize on the
growing market demand for drilling fluids and production and
specialty chemicals in North
America while generating free cash flow.
Additional information about CES is available at www.sedar.com
or on the Company's website at www.cesenergysolutions.com.
THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT
ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS
RELEASE.
SOURCE CES Energy Solutions Corp.
