TORONTO, ON / ACCESSWIRE / March 10, 2016 / Estrella International Energy Services Ltd. (TSXV: EEN) (the "Company" or "Estrella"), announces that further to its press release dated January 4, 2016, it has completed another restructuring of its existing debt.
The Company restructured its Colombian peso-denominated debt facilities with local banks, BBVA and Banco de Bogota (the "Facility"), which had an outstanding balance of approximately COP$106B (approximately USD$34.1 M). Under the terms of the restructuring, the Facility will mature in November 2022, and has an 18-month grace period for principal payments. Thereafter, the size of principal repayment will increase gradually until maturity, when 30% of the principal will be due. Finally, the Company will be subject to certain additional covenants, and will pay a financing fee to the banks, that are in line with transactions of this type.
The Company has also agreed with its controlling shareholder Ringo Holding L.P (the "Shareholder") to extend the maturity date of the loan facilities made available to it by the Shareholder until December 12, 2017. The terms of such facilities are described in the Company's press release dated August 13, 2014. A copy of the amending agreement can be found on SEDAR at www.SEDAR.com.
About Estrella
Estrella is an oil and natural gas, geothermal and mining service company with operations throughout Latin and South America. It provides conventional drilling services; directional drilling services; tools and equipment sales and rentals; work-over and finishing services; and consulting and engineering services. The Corporation is headquartered in Buenos Aires, Argentina and has operating locations in several countries in Latin and South America.
For further information:
Estrella International Energy Services Ltd.
Ricardo Sarmiento
Chief Executive Officer
Javier Vedoya
Chief Financial Officer
Telephone: +54 (11) 5217-5250
Facsimile: +54 (11) 5217-5280
Email: info@estrellasp.com
Forward Looking Statements
This press release may contain forward-looking statements which reflect management's expectations regarding future growth, results of operations, performance and business prospects of Estrella. These forward-looking statements may relate to, among other things, forecasts or expectations regarding business outlook for Estrella, commodity prices for oil and natural gas, oil and natural gas demand and production growth, debt service requirements for Estrella, improvements in operating procedures and technology, capital expenditures by Estrella and the oil and gas industry, the business strategies of Estella's customers, future global economic conditions, and future results of operations, expectations regarding the Company's ability to raise capital, realization of the anticipated benefits of acquisitions and dispositions, revenue growth, future acquisitions, generation of cash flow, and may also include other statements that are predictive in nature, or that depend upon or refer to future events or conditions, and can generally be identified by words such as "may", "will", "expects", "anticipates", "intends", "plans", "believes", "estimates", "guidance" or similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. These statements are not historical facts or guarantees of future performance, but instead represent management's current expectations, estimates and projections regarding future events.
The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances, such as future availability of capital on favourable terms, may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Estrella. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The forward-looking statements contained in this press release are made as of the date of this press release, and Estrella does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities law.
THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. THESE SECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Estrella International Energy Services Ltd.
