Impact: Positive. The amended credit facility should allow Calfrac to remain within its covenants in the near-term. However, our forecast suggests the Company will breach its covenants in 3Q16e, absent using the newly instituted equity raise clause. We suspect the Company will look to further right size the business to avoid dilution.
14 Dec 2015
CALFRAC WELL SERVICES LTD. (CFW) RECEIVES COVENANT RELIEF AND PROVIDES 2016E CAPITAL BUDGET
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CALFRAC WELL SERVICES LTD. (CFW) RECEIVES COVENANT RELIEF AND PROVIDES 2016E CAPITAL BUDGET
Calfrac Well Services Ltd. (CFW:TSE) | 0 0 1.1% | Mkt Cap: 964.6m
- Published:
14 Dec 2015 -
Author:
Ian B. Gillies -
Pages:
3
Impact: Positive. The amended credit facility should allow Calfrac to remain within its covenants in the near-term. However, our forecast suggests the Company will breach its covenants in 3Q16e, absent using the newly instituted equity raise clause. We suspect the Company will look to further right size the business to avoid dilution.