Ceiba Energy Services Announces Amendment to Credit Facility

CALGARY, ALBERTA--(Marketwired - July 13, 2017) - Ceiba Energy Services Inc. ("Ceiba" or the "Company") (TSX VENTURE:CEB) announces that it has entered into an amending agreement (the "Amendment") with Alberta Treasury Branches ("ATB") dated effective July 13, 2017 to amend the terms of its previously amended credit facility entered into on March 7, 2016 (the "Credit Facility"). The Credit Facility provided for up to $15 million of credit which included a $5 million revolving credit facility and a $10 million term credit facility, $5 million of which was immediately available (and fully drawn in mid-2016) and $5 million of which is available when Ceiba achieves adjusted EBITDA* in the last twelve months of $4 million. The Credit Facility has one financial covenant that requires the Company's debt service coverage ratio to be greater than 1.3. The debt service coverage ratio calculation is defined in the Credit Facility and is generally the Company's adjusted EBITDA in the last twelve-month period divided by the total of the Company's interest paid and principal payments (excluding repayment of convertible debentures) in the last twelve-month period. The Amendment has, among other things, extended the maturity date of the $5 million drawn term facility from May 31, 2017 to September 30, 2017 (unless further extended by Ceiba and ATB), removed the second $5 million term facility and removed the financial covenant for the twelve-month period ended June 30, 2017. The $5 million revolving credit facility remains in place and interest rates for the Credit Facility remain unchanged.

About Ceiba Energy Services Inc.

Ceiba provides specialized services to the energy sector, specifically to companies involved in the exploration, extraction and production of oil and natural gas in Western Canada. Ceiba develops and constructs facilities in proximity to its customers to provide treatment of crude oil emulsion, terminalling, storage and marketing of oil and disposal of production water.

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*Adjusted EBITDA refers to earnings before interest, tax, depreciation and amortization. EBITDA is calculated based on terms and definitions set out in the Credit Facility, which adjusts net income based on gains or losses from the sale of capital assets and other non-cash income and expenses and in calculated on a trailing 12 month basis.