North American Energy Partners Inc. announced the signing of an amended and restated three year credit facility ("the facility") with its existing banking syndicate that is effective Oct. 9. Highlights of the facility include the Company extending the credit agreement for three years, reducing its cost of debt by negotiating a 1.5% lower interest rate and increasing borrowing flexibility by securing the facility through a combination of working capital and equipment. To illustrate the negotiated reduction, if applied retroactively, the weighted average interest rate at June 30, 2013 would have decreased from 7.41% to 5.91%.

The new facility provides borrowing of up to $85 million using a borrowing base determined by the value of receivables and equipment. The facility has a tranche A that will support up to $60 million in both borrowing and letters of credit and a tranche B which will allow for up to $25 million in letters of credit. By moving to an asset supported borrowing base, the financial covenants are reduced to a Senior Leverage Ratio and a Fixed Charge Coverage Ratio. The Senior Leverage Ratio, which is a ratio of Senior Debt (not including the 9.125% Series 1 Senior Unsecured Debentures) to trailing 12 months Consolidated EBITDA, remains unchanged and is to be maintained at less than 2.00 to 1.0. The Fixed Charge Cover Ratio replaces the Current Ratio and the Interest Coverage Ratio. The Fixed Charge Cover Ratio is a ratio of Consolidated EBITDA to Consolidated Fixed Charges, which by December 31, must be maintained at greater than 1.20 to 1.0. Consolidated Fixed Charges include cash interest, scheduled repayment of debt, cash net capital expenditures and any dividend payments or stock repurchases.

"We are pleased with the outcome of the negotiations with our existing lenders," stated Mr. David Blackley, Chief Financial Officer. "The new credit facility lowers our cost of borrowing, provides financing to support our ongoing operational needs and, I believe, demonstrates the continued support of our banking syndicate in North American Energy Partners."

North American Energy Partners Inc. is one of the largest providers of heavy construction and mining services in Western Canada. For more than 50 years, NAEP has provided services to large oil, natural gas and resource companies, with a principal focus on the Canadian Oil Sands.