CWC Well Services lifts three-year revolver to C$75 million, cuts rate

By Susanna Moon

Chicago, June 24 - CWC Well Services Corp. said it amended its three-year extendible revolving credit facility, lifting the size to C$75 million.

Interest on the loans was reduced by 50 basis points to Prime rate plus 75 bps to 225 bps or the banker's acceptance rate plus 175 bps to 325 bps, in each case with the margin based on the company's ratio of debt to EBITDA, according to a company press release.

Proceeds will be used for acquisitions, to finance capital expenditures for additional equipment, for working capital investment and for other general corporate purposes.

The company amended the facility last Friday with a syndicate led by Alberta Treasury Branches as lead arranger and including National Bank of Canada and HSBC Bank Canada.

The facility has an accordion that allows the company to increase the credit facility by another C$25 million.

The revolver requires interest to be paid monthly with no scheduled principal payments during the committed term and the balance due on June 21, 2016, the release noted.

The facility initially was used to repay the company's previous non-revolving facility of C$14.25 million, which had higher interest rates of 7.42%, the company said.

As of last Friday, the total drawn under the facility was C$39.1 million.

CWC is a well servicing company operating in the Western Canadian Sedimentary Basin with a suite of oilfield services including service rigs, coil tubing, snubbing and well testing. The company is based in Calgary, Alta.

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