CALGARY, ALBERTA -- (Marketwired) -- 06/04/14 -- GASFRAC Energy Services Inc. (TSX: GFS) (the "Corporation") is pleased to announce that it has entered into a commitment letter with a Canada Branch of a U.S. Federally Chartered Bank providing for up to $60,000,000 of senior secured financing (the "Facility"). The Facility is anticipated to be a five year revolving credit facility of up to $60,000,000, subject to a borrowing base. Initially $35,000,000 will be available under the Facility, with availability subject to increase based on future performance of the Corporation. Closing of the Facility is subject to satisfactory completion of certain conditions, including due diligence and the execution of definitive loan and security agreements.
GASFRAC CEO, Jim Hill commented: "We are very pleased to have entered into a commitment agreement for this new revolving credit facility. The refinancing of our current outstanding senior debt has been a strategic priority and this new revolving credit facility should add strength and flexibility to our balance sheet going forward. We remain committed to maintaining financial discipline and to reposition GASFRAC to deliver value for all our stakeholders."
GASFRAC Energy Services, Inc. is an oil and gas technology and service company headquartered in Calgary, Alberta and the sole provider of gelled LPG fracturing technology and other fluid fracturing systems in North America.
This news release contains certain statements that constitute forward-looking statements under applicable securities legislation. All statements other than statements of historical fact are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", or the negative of these terms or other comparable terminology. These statements are only as of the date of this document and we do not undertake to publicly update these forward looking statements except in accordance with applicable securities laws. Forward-looking statements including completion of the Facility are based on current expectations, estimates, projections and assumptions, which we believe are reasonable but which may prove to be incorrect and therefore such forward-looking statements should not be unduly relied upon. In addition to other factors and assumptions which may be identified in this document, assumptions have been made regarding, among other things: industry activity; the general stability of the economic and political environment; effect of market conditions on demand for the Corporation's products and services; the ability to obtain qualified staff, equipment and services in a timely and cost efficient manner; the ability to operate its business in a safe, efficient and effective manner; the performance and characteristics of various business segments; the effect of current plans; the timing and costs of capital expenditures; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding environmental matters in the jurisdictions in which the Corporation operates; and the ability of the Corporation to successfully market its products and services. Forward-looking statements are subject to a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks and uncertainties include: the ability of the Corporation to satisfy all conditions related to the financing, fluctuating prices for crude oil and natural gas; changes in drilling activity; general global economic, political and business conditions; weather conditions; regulatory changes; the successful exploitation and integration of the technology; customer acceptance of the technology; success in obtaining issued patents; the potential development of competing technologies by market competitors; and availability of products, qualified personnel, manufacturing capacity and raw materials. In addition, actual results could differ materially from those anticipated in these forward-looking statements as a result of the risk factors set forth under the section entitled "Business Risks" in the Corporation's MD&A filed on SEDAR.
GASFRAC Energy Services Inc.
James M Hill
Chief Executive Officer