High Arctic Announces Closing of $8.1 Million Mortgage Financing

Author of the article: NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW CALGARY, Alberta, Dec. 20, 2021 (GLOBE NEWSWIRE) — High Arctic Energy Services Inc. (TSX: HWO) (“High Arctic” or the “Corporation”) is pleased…
High Arctic Announces Closing of $8.1 Million Mortgage Financing

Author of the article:

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW

CALGARY, Alberta, Dec. 20, 2021 (GLOBE NEWSWIRE) — High Arctic Energy Services Inc. (TSX: HWO) (“High Arctic” or the “Corporation”) is pleased to announce that it has entered into a mortgage arrangement (the “Mortgage Financing”) with Business Development Bank of Canada (“BDC”) secured by land and buildings owned and occupied by High Arctic (the “Mortgage Security”).

The Mortgage Financing provides the Corporation with long term liquidity. It supplements the Corporation’s net cash position which was $20.2 million as of September 30, 2021 before taking in to account a special dividend of $9.7 million paid on November 5, 2021.

The $8.1 million mortgage has an initial term of 5 years with a fixed interest rate of 4.30% and an amortization period of 25 years. Payments are due monthly, with the option to prepay up to 15 percent in any 12-month period. The mortgage is secured by land and buildings owned by the Corporation and located within Alberta, Canada.

The current credit facility with HSBC (the “Credit Facility”) which matures on August 31, 2023, has been amended to accommodate the Mortgage Financing. The availability has been reduced from $45 million to $37 million and site-specific assets held as Mortgage Security for BDC have been carved out. The Credit Facility remains subject to certain EBITDA covenants, however a minimum of $5 million can be drawn outside of these covenants. All other material terms of the Credit Facility remain unchanged.

Lance Mierendorf, CFO noted “The mortgage financing strengthens the Corporation’s capital structure by providing a layer of long-term debt positioned to endure the energy services business cycle. The financing adds to existing cash balances and when combined with an undrawn Credit Facility provides strong liquidity. With an improving outlook in both Canada and Papua New Guinea this development strengthens High Arctic’s financial flexibility to meet operational and investment opportunities.”

About High Arctic

High Arctic’s principal focus is to provide drilling and specialized well completion services, equipment rentals and other services to the oil and gas industry. High Arctic is a market leader providing drilling and specialized well completion services and supplies rig matting, camps, and drilling support equipment on a rental basis in Papua New Guinea. The Western Canadian operation provides well servicing, well abandonment, snubbing and nitrogen services and equipment on a rental basis to a large number of oil and natural gas exploration and production companies.

For further information contact:

Lance Mierendorf                                         

Chief Financial Officer                        

P: +1 (587) 318 2218

P: +1 (800) 688 7143                                        

                        

High Arctic Energy Services Inc.

Suite 500, 700 – 2nd Street S.W.

Calgary, Alberta, Canada T2P 2W1

website: www.haes.ca

Email: [email protected]

Financial Post Top Stories

Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.

By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

Read More

Total
0
Shares
Leave a Reply

Your email address will not be published.

Related Posts
Thousands of farmers stage anti-tax protest in Argentine capital
Read More

Thousands of farmers stage anti-tax protest in Argentine capital

Author of the article: BUENOS AIRES — Thousands of Argentine farmers protested in Buenos Aires on Saturday against President Alberto Fernandez, whose policies to contain food prices to curb rampant inflation have been criticized by the agricultural sector. Argentina is one of the world’s top food exporters and the sector is key to Latin America’s…
Russia Rejects IEA Charge It’s to Blame for Europe Gas Crunch
Read More

Russia Rejects IEA Charge It’s to Blame for Europe Gas Crunch

Author of the article: Bloomberg News Olga Tanas By Olga Tanas (Bloomberg) — Russia has nothing to do with the energy crisis in Europe, Deputy Prime Minister Alexander Novak said, rejecting allegations from the International Energy Agency this week that it’s holding back supplies and driving up prices of natural gas. “Neither Russia nor our…
Banks, consumer stocks haul FTSE 100 lower
Read More

Banks, consumer stocks haul FTSE 100 lower

Author of the article: UK’s blue-chip shares were dragged down by banking and consumer oriented stocks on Monday, while reports of the Truss government reversing tax cuts in their new fiscal policy helped the pound, capping losses for the mid-cap index. The FTSE 100 was down 0.6%, while the FTSE 250 shed 0.4% by 0718…