CALGARY,
AB, April 25, 2023 /CNW/ - CES Energy
Solutions Corp. ("CES" or the "Company") (TSX:
CEU) (OTC: CESDF) is pleased to announce that it has
successfully entered into an amended and restated credit agreement
dated April 25, 2023 (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, ATB
Financial, Bank of Montreal, Wells
Fargo Bank, HSBC Bank Canada, Canadian Imperial Bank of Commerce,
Business Development Bank of Canada, and Canadian Western Bank, the total
size of the increased Credit Facility is approximately C$
equivalent $700.0 million consisting
of a Canadian Term Loan Facility of $250.0
million and an aggregated revolving facility of
approximately C$ equivalent $450.0
million. The Credit Facility matures on April 25, 2026 and is secured by substantially
all of the Company's assets and includes customary terms,
conditions and covenants.
The expanded lending syndicate and increased Credit Facility
provide ample liquidity to support the current and future
requirements of the business and extends debt maturities to 2026 as
the $250.0 million Canadian Term Loan
Facility is available to repay and redeem the 6.375% senior
unsecured notes which are scheduled to mature in October of
2024.
"This Credit Facility effectively addresses CES' near-term and
foreseeable longer-term requirements. The Canadian Term Loan
Facility provides CES with the ability to repay the Senior Notes in
full on our own schedule over the next seven months. Thereafter,
CES has the opportunity to refinance and right-size the term
portion of its capital structure on suitable terms at any time up
until April of 2026. We also thank existing and new syndicate
members for their strong participation in our expanded Credit
Facility and for their ongoing partnership.", said Anthony Aulicino, Chief Financial Officer.
Highlights of the Amended and
Restated Credit Agreement
- Total facility size of approximately C$ equivalent $700.0 million, to address the maturity of the
Senior Notes and support the Company's strong revenue and record
financial performance underpinned by key investments in working
capital;
- Canadian Term Loan Facility of $250.0
million, initially undrawn and available to be drawn at any
time prior to December 1, 2023, the
proceeds of which must be used to repay and redeem the Senior Notes
in full;
- Canadian facility of $300.0
million, comprised of a $280.0
million syndicated revolving facility and a $20.0 million operating facility;
- U.S. facility of US$110.0
million, comprised of a US$100.0
million syndicated revolving facility and a US$10.0 million operating facility; and
- Accordion feature of C$ equivalent $50.0
million, with the option to exercise on available capacity
under either the Canadian or U.S. Facility.
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.
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.
