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CALGARY, Dec. 23, 2019 /CNW/ - AKITA Drilling Ltd.
(TSX:AKT.A; TSX:AKT.B) ("AKITA" or the "Company") is pleased to
announce that it has entered into an agreement with its syndicate
of lenders (the "Lenders") to make certain amendments to its
$125 million credit facility (the
"Credit Facility") to provide the Company with increased financial
flexibility.
The principal amendments to the Credit Facility are:
- an extension of the maturity date of the Credit Facility by one
year to September 11, 2023; and
- changes to the Funded Debt to EBITDA Ratio (as defined in the
Credit Facility) covenant such that the Company shall ensure
that:
-
- for the Fiscal Quarter (as defined in the Credit Facility)
ending December 31, 2019, the Funded
Debt to EBITDA Ratio shall not be more than 4:00:1.00;
- for the Fiscal Quarter ending March 31,
2020, the Funded Debt to EBITDA Ratio shall not be more than
4.00:1.00;
- for the Fiscal Quarter ending June 30,
2020, the Funded Debt to EBITDA Ratio shall not be more than
3.50:1.00;
- for the Fiscal Quarter ending September
30, 2020, the Funded Debt to EBITDA Ratio shall not be more
than 3.50:1.00; and
- for the Fiscal Quarter ending December
31, 2020, the Funded Debt to EBITDA Ratio shall not be more
than 3.00:1.00
The Funded Debt to EBITDA Ratio is calculated quarterly on the
last day of each Fiscal Quarter on a rolling four quarter
basis.
AKITA is an Alberta corporation
engaged in the contract drilling business.
FORWARD-LOOKING INFORMATION:
Certain statements contained in this news release may
constitute forward-looking information. Forward-looking information
is often, but not always, identified by the use of words such as
"anticipate", "plan", "estimate", "expect", "may", "will",
"intend", "should", and similar expressions.
Forward-looking information involves known and unknown risks,
uncertainties and other factors that may cause actual results or
events to differ materially from those anticipated in such
forward-looking information.
The Company's actual results could differ materially from
those anticipated in this forward-looking information as a result
of regulatory decisions, competitive factors in the industries in
which the Company operates, prevailing economic conditions, and
other factors, many of which are beyond the control of the
Company.
The Company believes that the expectations reflected in the
forward-looking information are reasonable, but no assurance can be
given that these expectations will prove to be correct and such
forward-looking information should not be unduly relied upon. Any
forward-looking information contained in this news release
represents the Company's expectations as of the date hereof, and is
subject to change after such date. The Company disclaims any
intention or obligation to update or revise any forward-looking
information whether as a result of new information, future events
or otherwise, except as required by applicable securities
legislation.
SOURCE AKITA Drilling Ltd.
