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CALGARY, Dec. 19, 2016 /CNW/ - Canyon Services Group Inc. ("Canyon" or the "Company") is pleased to announce that effective December 19, 2016, it has amended its extendible revolving operating credit facility (the "Amended Facility"). The Amended Facility does not change the amounts available, but provides the Company with more financial flexibility with reduced financial covenant requirements. Subject to certain conditions, the key financial covenant amendments include a deferral of testing the debt to earnings before interest, taxes, depreciation, amortization, impairment and share-based payments ("EBITDA") ratio calculation until December 31, 2017 and a deferral of the debt service coverage ratio calculation until September 30, 2017. At September 30, 2016, Canyon had $15 million drawn on its $100 million credit facility.
Canyon is an oilfield services company that focuses operations in the Western Canadian Sedimentary Basin with two core business lines: Pressure Pumping Services and Full-Service Fluid Management and Hauling Services.
Pressure Pumping Services are provided by Canyon through its wholly-owned subsidiary Canyon Technical Services Ltd. and include hydraulic fracturing, high-rate nitrogen fracturing, coiled tubing, chemical stimulation, remedial and primary cementing.
Full-Service Fluid Management and Hauling Services are provided by Canyon through its wholly-owned subsidiary Fraction Energy Services Ltd. and include fluid sourcing, transfer, hauling and containment.
This press release contains non-GAAP measures. These statements do not have any standardized meaning as prescribed by International Financial Reporting Standards (IFRS) and therefore are unlikely to be comparable to similar measures used by other companies. The non-GAAP measure disclosed by the Company in this press release is EBITDA (as defined in the Amended Facility).
Canyon calculates EBITDA, for the purposes of the Amended Facility, as profit and comprehensive income for the year plus interest expense, income taxes, depreciation, amortization, impairment, share-based payment expense and other non-cash items.
SOURCE Canyon Services Group Inc.
For further information: Brad Fedora, President and CEO, Canyon Services Group Inc., 2900 Bow Valley Square III, 255 - 5 Avenue SW, Calgary, Alberta, T2P 3G6, Phone: 403-290-2491, Fax: 403-355-2211; or Barry O'Brien, Vice President, Finance and CFO, Canyon Services Group Inc., 2900 Bow Valley Square III, 255 - 5 Avenue SW, Calgary, Alberta, T2P 3G6, Phone: 403-290-2478, Fax: 403-355-2211