CALGARY, ALBERTA -- (Marketwired) -- 06/20/14 -- GASFRAC Energy Services Inc. (the "Corporation") (TSX: GFS) is pleased to announce that it has closed the $60,000,000 debt financing previously announced in its press release of June 4, 2014.
In connection therewith, the Corporation has entered into a senior secured credit facility (the "Facility") with PNC Bank Canada Branch ("PNC"). The Facility is a five year revolving credit facility of up to $60,000,000, subject to a borrowing base with interest at prime plus 1.5%. Initially $35,000,000 will be available under the Facility, with availability subject to increase based on future performance of the Corporation. The term of the Facility may be accelerated to November 30, 2016, in the event certain conditions related to the Facility are not met.
GASFRAC CEO, Jim Hill commented: "We are very pleased to have closed this new revolving credit facility. The refinancing provides the Corporation with increased flexibility as we focus on building our customer base through our expanded fluid systems and strengthened technical sales force."
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 but without limitation, an increase in the amount available under the Facility and possible acceleration of the term 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.
Requests for shareholder information should be directed to:
James M Hill
Chief Executive Officer