04:52 PM EST, 12/20/2024 (MT Newswires) -- Source Energy Services ( SCEYF ) said Friday afternoon it completed a refinancing of its credit facilities, securing a new five-year, US$135-million term loan with Silver Point Finance and a new C$40 million revolving asset-backed loan with the Canadian Imperial Bank of Commerce (CM.TO).

The funds from the term loan will be used to pay off the company's 10.5% senior secured notes due March 2025 and reduce the current asset-backed loan balance, it said.

The company said the refinancing provides it with lower borrowing costs, greater financial flexibility, improved liquidity, neutrality to its current leverage position, and loan maturities extended to 2029.

The term loan with Silver Point matures on Dec. 20, 2029. The CIBC ABL facility remains unused at closing, matures on Dec. 20, 2027, and can be drawn in either Canadian or US dollars, the company added.

Source Energy shares closed up $0.20 to $15.58 on the Toronto Stock Exchange.