CALGARY, Feb. 28 /CNW/ - Bonnett's Energy Services Trust (TSX:BT.UN) ("Bonnett's", or the "Trust") announces today that it has entered into a new credit facility with its lenders.
The agreement, for a 27 month term expiring May 31, 2013, includes an $8.0 million committed revolving operating facility in addition to its current committed non-revolving term facilities totaling $31.2 million.
The operating facility is currently undrawn and the Trust had total term debt, net of cash on hand, of approximately $28.0 million as at February 25, 2011.
The terms of the agreement are expected to result in a 100 basis point (1%) reduction in the cost of borrowing, relative to the prime lending rate, and provides for additional reduced borrowing costs based on the financial performance of the Trust.
"We are very pleased with the terms of our new credit agreement" commented Murray Toews, Chief Executive Officer of the Trust. "Our lending syndicate has recognized the significant improvements made by our team and expressed confidence in our strategy going forward with their renewed commitment."
Bonnett's Energy Services is a diversified Trust, providing wireline and testing services, fishing and oilfield rentals in the Western Canadian Sedimentary Basin.
Disclosure Regarding Forward-Looking Statements
Certain statements contained in this news release constitute forward-looking statements. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", and similar expressions, as they relate to the Trust, are intended to identify forward-looking statements. Such statements reflect the Trust's current views with respect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause the Trust's actual results, performance or achievements to vary from those anticipated in this news release. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release as intended, planned, anticipated, believed, estimated or expected. Except where required by law, the Trust does not assume any obligation to update these forward-looking statements if conditions or opinions should change. Readers should not place undue reliance on forward-looking statements.
SOURCE Bonnett's Energy Services Trust
For further information: Additional information can be obtained by contacting the Trust at Bonnett's Energy Services Ltd., R.R. 2, Site 33, Box 1, Grande Prairie, Alberta, T8V 2Z9. Information is also available at the Trust's website at www.bonnettsenergy.com; Murray Toews, Chief Executive Officer at (780) 513-3400 or David Ross, Chief Financial Officer at (403) 264-3010, Fax: (403) 693-0093, E-mail: email@example.com