CALGARY, Dec. 29, 2015 /CNW/ - Petrowest Corporation ("Petrowest") (TSX:PRW) announces that its lenders (under both the syndicated credit facility and the subordinated debt agreement) have granted waivers to February 29, 2016 of non-compliance with certain financial covenants in the Company's credit facilities.
Specifically, the waivers are of the following covenants: senior funded debt to Adjusted EBITDA, total funded debt to Adjusted EBITDA, minimum Adjusted EBITDA of $20.7 million for the trailing four quarterly periods ending on December 31, 2015, and the negative variance covenant between monthly reported Adjusted EBITDA and budgeted Adjusted EBITDA.
The waivers are conditional on Petrowest providing a 2016 budget to its lenders on or before January 18, 2016. Additional information respecting Petrowest's credit facilities and the financial covenants in those credit facilities may be found in Petrowest's Management Discussion and Analysis ("MD&A") for the three and nine months ended September 30, 2015, available under Petrowest's profile on the SEDAR website at www.sedar.com.
Lloyd Wiggins, Petrowest's Chief Financial Officer, states "Petrowest is excited entering 2016 following the award of its largest project since inception, BC Hydro Site C Clean Energy Project. The project is expected to get underway in early January and provides the Company with a transformational growth trajectory entering 2016. It is encouraging to receive the continuing support from our lenders as we enter these transformational times."
Petrowest expects to disclose additional information in regards to its 2016 outlook and revised financial covenants in early 2016.
Adjusted EBITDA is a non-IFRS financial measure. The definition and use of non-IFRS financial measures by Petrowest is described in the MD&A.
Petrowest is involved in both industrial and civil infrastructure projects, as well as pre-drilling and post-completion energy services, gravel crushing and hauling for non-energy sector customers. Petrowest's primary operations are based in northeastern British Columbia and northwestern Alberta.
SOURCE Petrowest Corporation
For further information: Nikolaus Kiefer, Vice President of Investor Relations & Corporate Development at (403) 384-0405 or [email protected]