CALGARY, ALBERTA--(Marketwired - Dec. 16, 2015) - Logan International Inc. (TSX:LII) ("Logan" or the "Company") is pleased to announce that it has entered into an agreement with its lenders to make certain amendments (the "Amendments") to its credit agreement (the "Credit Agreement").
The key components of the Amendments include:
- the reduction of the lenders' commitment to $60 million (US Equivalent) (the "Commitment") from $115 million (US Equivalent). In addition, outstanding borrowings will be limited to the lesser of the Commitment or the borrowing base, which is based on the value of certain assets including accounts receivable, inventory and equipment.
- the removal of the leverage covenant and the asset coverage covenant.
- the replacement of the current interest coverage covenant with a revised interest coverage covenant that is calculated on an individual quarterly basis as follows: most recent quarterly Adjusted EBITDA/Most recent quarterly Interest Expense. The covenants are as follows: Q4 2015 - 1.25 to 1.00, Q1 2016 - 1.50 to 1.00, Q2 2016 and Q3 2016 - 2.00 to 1.00.
David MacNeill, President and Chief Executive Officer, commented, "We are pleased to announce the Amendments to the Credit Agreement. We are confident that the Commitment will provide ample liquidity to Logan through the maturity of the Credit Agreement and, further, we believe that the covenant relief will provide the financial flexibility the Company requires to endure through these difficult industry conditions. We would like to thank the banks for their continued commitment to Logan."
Logan provides specialized downhole tools and services to oilfield service providers, drilling contractors and exploration and production operators. It is organized into three classifications:
- Manufacturing and sales of fishing and intervention tools, including retrieving, stroking and remedial tools and power swivels used in well workover, intervention, drilling and completion activities (Logan Oil Tools, Inc.); and high-performance poly-crystalline diamond compact cutters and bearings (Logan SuperAbrasives, Inc.)
- Manufacturing and sales of completion products and services including packers and bridge plugs (Kline Oilfield Equipment, Inc.); proprietary multi-zonal completion technology and conventional completion products and services (Logan Completion Systems Inc.); and patented products and services used to optimize production in sand-laden, heavy-oil wells (Scope Production Developments);
- Rental of specialty drilling and workover tools including drilling, fishing and coiled tubing stroking tools and the Xciter vibration tools (Xtend Energy Services, Inc. and Logan Jar LLC).
Common shares of Logan are traded on the Toronto Stock Exchange (TSX) under the ticker symbol "LII".
When used in this press release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "propose", "expect", "potential", "continue", and similar expressions, are intended to identify forward-looking statements. These statements relate to future events or future performance of Logan. This press release contains forward-looking statements with respect to the Company's ability to successfully amend the credit agreement and expectations regarding adequate liquidity through to December 2016, future economic conditions and operating results, continued assessment of personnel levels and exploration of the potential disposition of assets. These statements involve 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 statements. Such statements reflect Logan's current views with respect to certain events, including the Company's ability to successfully amend the credit agreement, future economic recovery and fourth quarter operating results, and are subject to certain risks, uncertainties and assumptions. Although Logan believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because we can give no assurance that they will prove to be correct. Many factors could cause Logan's actual results, performance, or achievements to materially differ from those described in this press release. Readers are referred to Logan's Annual Information Form filed on www.sedar.com, which identifies significant risk factors that could cause actual results to differ from those contained in the forward-looking statements. Should one or more risks or uncertainties materialize or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this press release. The forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. These statements speak only as of the date of this press release. Logan does not intend and does not assume any obligation to update these forward-looking statements to reflect new information, subsequent events or otherwise, except as required by law. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities described herein in any jurisdiction.
For more information about Logan International Inc., please visit our website at www.loganinternationalinc.com.
Source: Marketwired (Canada)
(December 16, 2015 - 8:50 AM EST)
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