Calfrac Well Services Ltd. ("Calfrac" or the "Company") (TSX–CFW) has provided notice to its banking syndicate that it has elected to use the first of its two fully-funded $25 million equity cures, effective as of the quarter ending June 30, 2017. Calfrac has elected to trigger the first of its cures even though it is fully compliant with the financial covenants included in its credit agreement.
As previously disclosed, Calfrac's two equity cures may not be used in consecutive calendar quarters nor triggered after December 31, 2017. The cures may be used even if Calfrac is in compliance with its funded debt to EBITDA covenant. Given the restrictions mentioned above, there is greater benefit to Calfrac to begin releasing the cure funds from segregation and using them in its operations, which are experiencing resumed growth.
Calfrac's President and Chief Executive Officer Fernando Aguilar commented: "Industry demand has been steadily improving since late last year, which has allowed Calfrac to increase the pricing for our services. At the same time, this demand has given rise to a number of opportunities for the Company to reactivate equipment and return to work across its North American platform. Releasing a portion of the funds that have been segregated as an equity cure allows us to focus on a safe, organized and disciplined acceleration in activity, including ongoing efforts to add operational staff to our Calfrac family."
Calfrac's common shares are publicly traded on the Toronto Stock Exchange under the trading symbol "CFW". Calfrac provides specialized oilfield services to exploration and production companies designed to increase the production of hydrocarbons from wells drilled throughout western Canada, the United States, Russia, Argentina and Mexico.
SOURCE: Calfrac Well Services Ltd.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.