Civeo Completes Acquisition of Noralta Lodge Ltd. and Announces Amendment and Restatement of Credit Facility
HOUSTON, April 02, 2018 (GLOBE NEWSWIRE) -- Civeo Corporation ("Civeo" or the "Company") (NYSE:CVEO), one of the largest global providers of workforce accommodations, logistics and facility management services to the natural resource industry, announced today that it has closed its acquisition of 100% of the equity interests of Noralta Lodge Ltd.
Bradley J. Dodson, Civeo's President and Chief Executive Officer, stated, “We are pleased to close the acquisition of Noralta, strengthening our position as the partner of choice for our customers in the Canadian oil sands region. This represents an important milestone for Civeo, and on behalf of all our employees, I would like to welcome Noralta to the Civeo team. Looking ahead, we remain focused on generating free cash flow while delivering best in class service and strengthening our balance sheet, and will continue to opportunistically pursue organic and inorganic growth opportunities to support these priorities.”
Civeo also completed the amendment and restatement of its credit facility. Among other things, the amended credit facility:
- extends the maturity date of the obligations thereunder by 18 months to November 30, 2020;
- reduces the permitted level of Civeo’s total leverage ratio (total debt to consolidated EBITDA) to a maximum of 4.50x for the first and second quarter of 2018, with further reductions to 4.25x in the third quarter of 2018, 3.75x in the fourth quarter of 2018 and 3.50x in the first quarter of 2019 and thereafter;
- increases the amortization rate from 5% per annum to 10% per annum;
- relaxes certain of the covenants to provide greater flexibility, including to enhance Civeo’s ability to make acquisitions and to incur indebtedness; and
- reduces revolving borrowing availability to a level more consistent with the expected needs, which will reduce undrawn commitment fees.
Additional information on the terms of the amended credit facility can be found in a separate Form 8-K being filed today by Civeo with the Securities and Exchange Commission. In connection with the closing of the Noralta acquisition, the Company borrowed approximately $166 million under the credit facility to fund a portion of the cash consideration to the sellers, resulting in approximately $71 million of remaining borrowing availability thereunder.
About Civeo
Civeo Corporation is a leading provider of workforce accommodations with prominent market positions in the Canadian oil sands and the Australian natural resource regions. Civeo offers comprehensive solutions for housing hundreds or thousands of workers with its long-term and temporary accommodations and provides catering, facility management, water systems and logistics services. Civeo currently owns a total of 19 lodges and villages in operation in Canada and Australia, with an aggregate of more than 24,000 rooms. Civeo is publicly traded under the symbol CVEO on the New York Stock Exchange. For more information, please visit Civeo's website at www.civeo.com.
About Noralta
Noralta is a premier, Alberta-based provider of remote accommodations to the Canadian oil sands region. Through its full service open lodge accommodations, facilities management services, and turnkey solutions, Noralta offers hospitality for tens of thousands of workers in Western Canada’s energy sector. With eleven lodges comprised of over 5,700 owned rooms and 7,900 total rooms strategically located throughout Northern Alberta, Noralta has the capacity to house large workforces and the flexibility to meet their clients’ rapidly changing needs.
Contacts:
Frank C. Steininger
Civeo Corporation
Executive Vice President and Chief Financial Officer
713-510-2400
Marc Cunningham or
Jeffrey Spittel
FTI Consulting Inc.
713-353-5407
