CALGARY, Alberta, April 14, 2022 (GLOBE NEWSWIRE) — ClearStream Energy Services Inc. (“ClearStream” or the “Company“) (TSX:CSM) today announced that it has completed the refinancing of its asset-based revolving credit facility (the “Refinancing“). ClearStream established a new $25 million asset-based revolving credit facility with a three-year term (the “ABL Facility“) to replace its existing $15 million asset-based revolving credit facility that was to mature on April 14, 2022 (the “Former ABL Facility“).
ABL Facility
The ABL Facility provides for maximum borrowings up to $25 million with The Toronto-Dominion Bank (the “Lender“). The amount available under the ABL Facility will vary from time to time based on the borrowing base determined with reference to the accounts receivable and inventories of ClearStream and certain of its subsidiaries. The obligations under the ABL Facility are secured by, among other things, a first ranking lien on all of the existing and after acquired accounts receivable and inventories of the Company and the other guarantors, being certain of the Company’s direct and indirect subsidiaries. The maturity date of the ABL Facility is April 14, 2025.
The financial covenants applicable under the ABL Facility are: (a) the Company must maintain a fixed charge coverage ratio equal to or greater than 1.00:1.00 for each twelve month period calculated and tested as of the last day of each fiscal quarter; and (b) the Company must not expend or become obligated for any capital expenditures in an aggregate amount exceeding $10 million during any fiscal year.
As at April 14, 2022, no amounts were drawn on the ABL Facility.
Term Loan Facility
Pursuant to the terms of the Fifth Amended and Restated Credit Agreement dated March 23, 2021 (the “Fifth ARCA“), ClearStream had access to (a) the Former ABL Facility and (b) a term loan facility providing for maximum borrowings of up to $40.5 million (the “Term Loan Facility“) with Canso Investment Counsel Ltd., in its capacity as portfolio manager for and on behalf of certain accounts that it manages (“Canso“).
As a result of the Refinancing, the Fifth ARCA has been amended and restated by a Sixth Amended and Restated Credit Agreement (the “Sixth ARCA“) to, among other things: (a) remove the Former ABL Facility; (b) extend the maturity date of the Term Loan Facility from September 30, 2022 to the date that is the earlier of (i) 180 days following the maturity date of the ABL Facility, (ii) October 14, 2025, and (iii) the date on which the Term Loan Facility is terminated earlier pursuant to its terms; (c) change the interest rate charged on the Term Loan Facility to a fixed rate of 8% (previously a floating rate …
