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CALGARY, Dec. 23, 2019 /CNW/ - AKITA Drilling Ltd. (TSX:AKT.A;TSX:AKT.B) ("AKITA" or the "Company") is pleased to announce that it has entered into an agreement with its syndicate of lenders (the "Lenders") to make certain amendments to its $125 million credit facility (the "Credit Facility") to provide the Company with increased financial flexibility.
The principal amendments to the Credit Facility are:
an extension of the maturity date of the Credit Facility by one year to September 11, 2023; and
changes to the Funded Debt to EBITDA Ratio (as defined in the Credit Facility) covenant such that the Company shall ensure that:
for the Fiscal Quarter (as defined in the Credit Facility) ending December 31, 2019, the Funded Debt to EBITDA Ratio shall not be more than 4:00:1.00;
for the Fiscal Quarter ending March 31, 2020, the Funded Debt to EBITDA Ratio shall not be more than 4.00:1.00;
for the Fiscal Quarter ending June 30, 2020, the Funded Debt to EBITDA Ratio shall not be more than 3.50:1.00;
for the Fiscal Quarter ending September 30, 2020, the Funded Debt to EBITDA Ratio shall not be more than 3.50:1.00; and
for the Fiscal Quarter ending December 31, 2020, the Funded Debt to EBITDA Ratio shall not be more than 3.00:1.00
The Funded Debt to EBITDA Ratio is calculated quarterly on the last day of each Fiscal Quarter on a rolling four quarter basis.
AKITA is an Alberta corporation engaged in the contract drilling business.
Certain statements contained in this news release may constitute forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "plan", "estimate", "expect", "may", "will", "intend", "should", and similar expressions.
Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information.
The Company's actual results could differ materially from those anticipated in this forward-looking information as a result of regulatory decisions, competitive factors in the industries in which the Company operates, prevailing economic conditions, and other factors, many of which are beyond the control of the Company.
The Company believes that the expectations reflected in the forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon. Any forward-looking information contained in this news release represents the Company's expectations as of the date hereof, and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable securities legislation.
SOURCE AKITA Drilling Ltd.
For further information: Darcy Reynolds, Vice President, Finance and Chief Financial Officer, 403-292-7530
AKITA is a premier oil and gas drilling contractor with a fleet of 37 drilling rigs. AKITA provides drilling services through two geographical segments: Canada and the United States (“US”). With a fleet of 20 drilling rigs, AKITA’s Canadian division operates in Alberta,...