Secure Energy Services Inc.
TSX : SES

Secure Energy Services Inc.

August 04, 2011 19:31 ET

Secure Energy Services Inc. Announces New $150 Million Syndicated Credit Facility and Announces Date for Release of Second Quarter 2011 Results

CALGARY, ALBERTA--(Marketwire - Aug. 4, 2011) - Secure Energy Services Inc. ("Secure" or the "Corporation") (TSX:SES) announced today that it has entered into a new $150 million syndicated credit facility ("Syndicated Facility") with a syndicate of six financial institutions and Canadian chartered banks.

The Syndicated Facility consists of an $140 million extendible revolving term credit facility and a $10 million revolving operating facility that replaces the Corporation's current $55 million non-syndicated revolving term facility. The Syndicated Facility can be expanded to $200 million through the exercise of an additional $50 million accordion feature, available upon request by the Corporation and subject to review and approval by the lenders.

The Syndicated Facility is a 3 year, committed facility with an initial maturity date of July 29, 2014 and is extendable annually, at the Corporation's request, provided that the maturity date associated with the granting of the extension does not exceed three (3) years. The facility is secured by substantially all of the Corporation's assets and includes customary terms, conditions and covenants, including that the consolidated debt to EBITDA ratio does not exceed 3.00 to 1.00, the consolidated debt to capitalization ratio does not exceed 0.40 to 1.00 and the consolidated fixed charge coverage ratio is not less than 1.00 to 1.00.

Amounts borrowed under the Syndicated Facility will bear interest at the Corporation's option of either the Canadian prime rate plus 1.0% to 2.50% or the banker acceptance rate plus 2.0% to 3.50%, depending, in each case, on the ratio of consolidated debt to EBITDA.

"This revolving credit facility is an important step toward balancing the Corporation's strategic capital structure. To date, the Corporation has funded its growth primarily through equity capital; however, the new credit facility will provide substantial borrowing capacity thus resulting in additional financial flexibility to execute our long-term growth strategy", said Rene Amirault, Secure's Chief Executive Officer, "The Syndicated Facility demonstrates the strength of our lender relationships and their confidence in our continued business plan execution."

Secure also announced today that it will release its 2011 second quarter interim unaudited financial and operating results on August 10, 2011 after markets close.

About Secure Energy Services Inc.

Secure is a TSX publicly traded energy services company that focuses on providing specialized services to upstream oil and natural gas companies operating in the Western Canadian Sedimentary Basin. The services provided by Secure assist these companies with the treatment and sale of crude oil and the handling of by-products associated with oil and natural gas development and production. The services provided by Secure include crude oil emulsion treatment, the terminalling, storage and marketing of crude oil, oilfield waste processing, tank washing, landfill disposal and disposal of produced and waste water. The Corporation's services are provided at ten facilities in Alberta and two facilities in British Columbia.

About Marquis Alliance Energy Group Inc.

Marquis Alliance, a wholly owned subsidiary of Secure, is an energy services company that specializes in the supply and development of drilling fluids and drilling fluid systems. Marquis Alliance focuses on providing products and systems designed for more complex wells, such as medium to deep wells, horizontal wells and horizontal SAGD wells. Marquis Alliance provides drilling fluids services in the Western Canadian Sedimentary Basin and in the northern United States with strategic focus on servicing the ongoing major resource plays such as, but not limited to, the Muskwa shales of the Horn River, the Cardium of Central Alberta, the Montney in the Deep Basin of Alberta and British Columbia, the oil sands of Alberta and Saskatchewan, the Bakken of Saskatchewan and North Dakota.

Marquis Alliance also provides environmental services comprised of drilling waste management and environmental sciences in connection with reclamation services. Environmental services involves determining the appropriate processes for disposing of drilling waste such as drill cuttings and fluids and/or the recycling of the fluids produced by drilling operations. In addition, Marquis Alliance provides a reclamation service to assess and determine the most appropriate and cost effective method for reclaiming the land back to its original pre-drilling state. Environmental scientists and chemists, in conjunction with its drilling fluids specialists, work to execute the reclamation and disposal process.

In addition, Marquis Alliance provides solids control and ancillary equipment rentals for drilling operations in both western Canada and the Rocky Mountain States. The majority of the activity for the solids control and equipment rental service line is in central Alberta and the oil sands. Marquis Alliance' current fleet of high speed centrifuges, drying shakers, bead recovery units, tanks and ancillary equipment is offered as a stand alone package or part of an integrated package with the drilling fluids and environmental services.

Non-GAAP measures

This press release contains references to EBITDA. This financial measure is not a measure that has any standardized meaning prescribed by Generally Accepted Accounting Principles ("GAAP") and is therefore referred to as non-GAAP measure. The non-GAAP measure used by the Corporation may not be comparable to a similar measure used by other companies. EBITDA is not a recognized measure under GAAP. Management believes that in addition to net income, EBITDA is a useful supplemental measure as it provides an indication of the results generated by the principal business activities of the relevant company prior to consideration of how those activities are financed or how the results are taxed. EBITDA is calculated as net income excluding depreciation, depletion and accretion, stock-based compensation, interest, and taxes.

The Toronto Stock Exchange has not reviewed, nor does it accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Secure Energy Services Inc.
    Rene Amirault
    Chairman, President and Chief Executive Officer
    (403) 984-6100
    (403) 984-6101 (FAX)

    Secure Energy Services Inc.
    Nick Wieler
    Chief Financial Officer
    (403) 984-6100
    (403) 984-6101 (FAX)
    www.secure-energy.ca