Cathedral Energy Services Ltd. Announces New Credit Facility

/NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/

CALGARY, Dec. 12, 2017 /CNW/ - Cathedral Energy Services Ltd. CET ("Cathedral" or the "Company") announces that it is entering into a new credit facility with Alberta Treasury Branches as Agent and including Alberta Treasury Branches and Export Development Canada as lenders.   

Under the new two year facility, expiring December 31, 2019, Cathedral's credit availability will be $20 million consisting of a $5 million operating facility and $15 million extendible revolving credit facility.  The key financial covenants associated with the new facility include a maximum Funded Debt to Bank EBITDA Ratio (as defined in the facility) of 3.0 to 1.0 and an Interest Coverage Ratio (as defined in the facility) of not less than 2.50 to 1.0, both of which are calculated quarterly.

Cathedral's previous credit facility provided for availability of $23 million. Cathedral elected to reduce the facility size compared to the previous facility to reduce standby and other fees.  As at the date hereof, Cathedral had not drawn on either the previous or new credit facility and as at September 30, 2017, the Company had $4 million of cash.

The new credit facility is expected to be in place by December 31, 2017.  Full details regarding the new facility will be available on SEDAR under the Company's SEDAR profile at www.sedar.com.

Cathedral Energy Services Ltd. (the "Company" or "Cathedral"), based in Calgary, Alberta is incorporated under the Business Corporations Act (Alberta) and operates in the U.S. under Cathedral Energy Services Inc.  The Company is publicly traded on the Toronto Stock Exchange under the symbol "CET".  Cathedral, is a trusted partner to North American energy companies requiring high performance directional drilling services. We work in partnership with our customers to tailor our equipment and expertise to meet their specific geographical and technical needs.  Our experience, technologies and responsive personnel enable our customers to achieve higher efficiencies and lower project costs.  For more information, visit www.cathedralenergyservices.com.

ADVISORY

This press release contains certain statements and information relating to Cathedral and its new credit facility that are based on the expectations of Cathedral as well as assumptions made by and information currently available to Cathedral which may constitute forward‐looking information under applicable securities laws.  In particular, statements related to the anticipated timing for the new credit facility being in place and the anticipated terms of the credit facility may constitute forward‐looking information.  Cathedral's actual results could differ materially from those anticipated in these forward-looking statements and information as a result of assumptions proving inaccurate and of both known and unknown risks, including the risk that the timing of the credit facility availability and/or terms of the credit facility change for any reason.  Cathedral disclaims any intention or obligation to publicly update or revise any forward‐looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.

SOURCE Cathedral Energy Services Ltd.

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