Ceiba Energy Services Announces Amendment to Credit Facility
CALGARY, ALBERTA--(Marketwired - Jul 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.
Reader Advisory
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the TSX Venture Exchange) accepts responsibility for the adequacy or the accuracy of this release.
*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.