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 January 4, 2016 - 6:14 PM EST
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Strad Energy Services Ltd. Announces Extension and Amendments to its Credit Facilities

CALGARY, ALBERTA--(Marketwired - Jan. 4, 2016) -


Strad Energy Services Ltd. ("Strad" or the "Company") (TSX:SDY) is pleased to announce that it has agreed with its syndicate of lenders to extend the maturity of its credit facilities (the "Credit Facilities") by one year to September 29, 2018, and to make certain other amendments thereto. 

The extension of the maturity of the Credit Facilities as well as certain of the amendments will provide added flexibility to Strad in the management of its business during the current reduced commodity price environment. These amendments include a relaxation of the Company's maximum ratio of Funded Debt to EBITDA, for certain periods from its current level of 3.0:1 up to a maximum of 4.5:1. Although the increased Funded Debt to EBITDA maximums are well beyond the Company's September 30, 2015 Funded Debt to EBITDA ratio of 0.8:1, the increased maximums offer further downside protection to the Company's strong balance sheet position.

The maximum ratio of Funded Debt to EBITDA has been amended as follows:

  • 3.5:1 for the twelve month period ending March 31, 2016,
  • 4.0:1 for the twelve month period ending June 30, 2016,
  • 4.5:1 for the twelve month periods ending September 30, 2016 and December 31, 2016,
  • 4.0:1 for the twelve month periods ending March 31, 2017 and June 30, 2017, and
  • 3.5:1 for the twelve month period ending September 30, 2017.

Dividends and other distributions continue to be permitted under the amended Credit Facilities to the extent that the ratio of Funded Debt to EBITDA does not exceed 2.50:1 for the above noted periods and 3.0:1 after September 30, 2017, assuming that no default exists or would exist as a result of such distribution.

In addition, given the reduced debt outstanding, and in an effort to keep costs of unutilized debt at a minimum, the Company has reduced the maximum amount of the Credit Facilities from $100 million plus $10 million USD to $63 million plus $7 million USD. Strad continues to be focused on prudently managing its balance sheet and the Company has reduced interest bearing debt net of cash further over the course of the fourth quarter of 2015 from levels at September 30, 2015.

Defined terms used herein with reference to the Company's Credit Facilities have the meanings set forth in the Company's Management Discussion and Analysis which can be found under the Company profile on SEDAR.

About Strad Energy Services Ltd.

Strad is a North American energy services company that focuses on providing well-site infrastructure solutions to the oil and natural gas industry. Strad focuses on providing complete customer solutions in well-site-related oilfield equipment for producers active in unconventional resource plays.

Strad is headquartered in Calgary, Alberta, Canada. Strad is listed on the Toronto Stock Exchange under the trading symbol "SDY".

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Strad Energy Services Ltd.
Andy Pernal
President & Chief Executive Officer
(403) 232-6901
(403) 775-9202

Strad Energy Services Ltd.
Greg Duerr
Chief Financial Officer
(403) 232-6901
(403) 705-4333

Source: Marketwired (January 4, 2016 - 6:14 PM EST)

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