STEP Energy Amends and Extends Credit Facility

CALGARY, Alta., July 12. 2022 (GLOBE NEWSWIRE) — STEP Energy Services Ltd. (TSX: STEP) (“STEP” or the “Company”) is pleased to provide an update on its credit agreement.

STEP has reached an agreement with a syndicate of Canadian banks amending and extending its credit agreement. The principal terms of STEP’s Third Amended and Restated Credit Agreement (the “Credit Agreement”) include:

  • C$215 million revolving facility, C$15 million operating facility, US$15 million operating facility; and
  • a term of three years with an expiry date of July 12, 2025.

The financial clauses of the credit agreement are as follows:

  • Financial debt/EBITDA ratio: not more than 3.00:1.00, calculated quarterly on the last day of each Fiscal Quarter on a rolling four-quarter basis; and
  • Interest coverage ratio: at least 3.00:1.00, calculated quarterly on the last day of each Fiscal Quarter on a rolling four-quarter basis.

The Company’s syndicate of banks is led by ATB Financial as administrative agent, joint lead manager and joint bookrunner and Canadian Imperial Bank of Commerce as syndication agent, joint lead manager and co-bookkeeper. The syndicate also includes Bank of Montreal, Bank of Nova Scotia, HSBC Bank Canada and Toronto Dominion Bank, all of which were participants in the previous facility. Export Development Canada has withdrawn from the STEP union. STEP will pay customary fees and expenses at prevailing market rates to the loan syndicate as a condition of the modification.

The Credit Agreement will be available on SEDAR (www.sedar.com).

ABOUT STAGE

STEP is an energy services company that provides high-capacity coiled tubing and hydraulic fracturing services to operators in North America. In Canada, STEP provides coiled tubing and fracturing services in the Western Canadian Sedimentary Basin. In the United States, STEP provides coiled tubing and fracturing services in the Permian Basin and Eagle Ford Shale Play in Texas, as well as coiled tubing services in the Bakken Shale Play in North Dakota and the Uinta-Piceance Basin. and Niobrara-DJ in Utah and Colorado, respectively. STEP provides the expertise – the people, equipment and knowledge – needed to improve operational efficiency and productivity in long reach borehole designs. At the heart of STEP’s strategy is the company’s commitment to executing safe projects, its dedication to its team of professionals in the field and, ultimately, to providing oil and gas producers with experience exceptional customer.

For more information please contact:

Regan Davis
Chief executive officer
Klaas Deemter
Financial director
Phone: 403-457-1772
Web: www.stepenergyservices.com
Phone: 587-390-0761