CALGARY, Alberta, July 12, 2022 (GLOBE NEWSWIRE) — STEP Energy Services Ltd. (TSX:STEP) (“STEP” or the “Company”) is pleased to provide an update on its credit agreement.

STEP has entered into an agreement with a syndicate of Canadian banks which amends and extends its credit agreement. The principal terms of STEP’s Third Amended and Restated Credit Agreement (the “Credit Agreement”) include:

• a CAD $215 million revolving facility, a CAD $15 million operating facility, a USD $15 million operating facility; and
• a three-year term with a maturity date of July 12, 2025.

The financial covenants in the Credit Agreement are as follows:

• 
  Funded Debt to EBITDA Ratio
  
  : not more than 3.00:1.00, calculated quarterly on the last day of each Fiscal Quarter on a rolling four quarter basis; and
• 
  Interest Coverage Ratio
  
  : at least 3.00:1.00, calculated quarterly on the last day of each Fiscal Quarter on a rolling four quarter basis.

The Company’s banking syndicate is led by ATB Financial as Administrative Agent, Co-Lead Arranger and Co-Bookrunner and the Canadian Imperial Bank of Commerce as Syndication Agent, Co-Lead Arranger and Co-Bookrunner. The syndicate also includes the Bank of Montreal, the Bank of Nova Scotia, HSBC Bank Canada and the Toronto Dominion Bank, all of which were participants in the previous facility. Export Development Canada has exited STEP’s syndicate. STEP will pay customary fees and expenses at prevailing market rates to the lending syndicate as a condition of the amendment.

The Credit Agreement will be made available on SEDAR (

www.sedar.com

).

ABOUT STEP

STEP is an energy services company providing deep capacity coiled tubing and hydraulic fracturing services to operators in North America. In Canada, STEP delivers coiled tubing and fracturing services in the Western Canadian Sedimentary Basin. In the U.S., STEP provides coiled tubing and fracturing services in the Permian Basin and Eagle Ford Shale Play in Texas along with coiled tubing services in the Bakken Shale Play in North Dakota and the Uinta-Piceance and Niobrara-DJ Basin in Utah and Colorado, respectively. STEP delivers the expertise – the people, the equipment, and the knowledge – required to improve operational efficiencies and productivity in extended reach wellbore designs. At the heart of STEP’s strategy is the company’s commitment to the execution of safe projects, its dedication to its team of field professionals and ultimately to providing oil and gas producers an Exceptional Client Experience.

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