Jun. 14, 2011 (Canada NewsWire Group) --
This new release contains "forward-looking and statements" within the meaning of applicable securities laws. For a full disclosure of the forward-looking information and statements and the risks to which they are subject, see "Forward-Looking Information" later in this news release.
CALGARY, June 14, 2011 /CNW/ - Petrowest Energy Services Trust ("Petrowest" or the "Trust") is pleased to announce the closing of two transactions to refinance its existing credit facility (the "Credit Facility"). The Credit Facility was held by a syndicate of Canadian banks.
Pursuant to this refinancing, the Trust and its subsidiaries have arranged a $47.9 million first lien term loan from Crystal Financial LLC, Nations Equipment Finance, LLC and certain of their affiliates that will mature five years from closing. This term loan is secured by a first charge over all assets other than certain accounts receivable, for which NORREP Credit Opportunities Fund, LP has a first charge and a second charge over all other assets of the Trust and its subsidiaries.
In addition, the Trust and its subsidiaries have secured a $25 million first lien term loan from NORREP Credit Opportunities Fund, LP that will mature four years from closing. The NORREP Credit Opportunities Fund, LP term loan is secured by a first charge on accounts receivable excluding lease receivables and a second charge over all other assets of the Trust and its subsidiaries. In connection with this refinancing, Petrowest Energy Services Trust also issued 5.625 million units at $0.40 to NORREP Credit Opportunities Fund, LP in partial payment of their financing fee. NORREP Credit Opportunities Fund, LP is managed by Crown Capital Partners Inc.
"We are very pleased to complete this refinancing of our previous credit facility with these long term facilities and look forward to working with our new lending partners to grow our business" said Lloyd Wiggins, Chief Financial Officer.
Canaccord Genuity advised the Trust on the refinancing.
ABOUT PETROWEST
Petrowest is a leading provider of pre-drilling and post-completion energy and civil infrastructure services to the northern region of the western Canadian sedimentary basin. Petrowest is an unincorporated, open-ended, limited purpose, mutual fund trust established under the laws of Alberta.
FORWARD LOOKING INFORMATION
This news release contains forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are identified by their use of terms and phrases such as "anticipate," "achievable," "believe," "expect," "estimate," "plan," "intend," "project," "may," "should", "could", "predict", "may," "will," or similar words suggesting future outcomes or language suggesting an outlook. Forward-looking statements and information are based on Petrowest's current beliefs as well as assumptions made by and information currently available to Petrowest concerning anticipated business performance. Although management of Petrowest considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward-looking statements are subject to many external variables that are beyond Petrowest's control, such as fluctuating prices for crude oil and natural gas, changes in drilling activity, and general local and global economic, political, business and weather conditions. If any of these, or other uncertainties, materialize the actual results of Petrowest may vary materially from those expected.
please contact Richard Quigley, President and CEO, or Lloyd A. Wiggins, Chief Financial Officer at 1-888-830-0881 and (403) 237-0881, respectively, or info@petro-west.com.
