|By Marketwired .||
|June 9, 2014 07:02 PM EDT||
CALGARY, ALBERTA -- (Marketwired) -- 06/09/14 -- Cordy Oilfield Services Inc. ("Cordy" or the "Corporation") (TSX VENTURE: CKK) announces that it has entered into a loan and security agreement with Nations Fund I, LLC (the "Lender"), an arm's length lender, pursuant to which it may borrow the maximum amount of $12.5 million (the "Loan").
An initial advance of the Loan in the amount $10.25 million (the "Initial Advance") was obtained by Cordy today. At Cordy's option, and subject to the satisfaction of certain conditions precedent set out in the loan agreement, up to an additional $2.25 million may be borrowed. A security interest in certain of Cordy's equipment was provided to the Lender. The Loan is due and payable on June 9, 2020 and bears interest at the rate of 12% per annum.
The amount of $600,000 (the "Holdback") was held back from the Initial Advance and deposited with Cordy's legal counsel, as escrow agent. The Holdback is releasable to Cordy upon the satisfaction of certain conditions related to Cordy's fixed charge coverage.
Cordy used a portion of the proceeds of the Loan to repay all indebtedness owed to its former principal lender. The balance of the proceeds will be used to pay transaction expenses and for general working capital.
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. All statements included herein, other than statements of historical fact, constitute forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of certain assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the Corporation's disclosure documents on the SEDAR website at www.sedar.com. The Corporation does not undertake to update any forward-looking information except in accordance with applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.