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Calfrac announces CDN$200 million debt-with-warrants financing
Calfrac announces CDN$200 million debt-with-warrants financing Calfrac announces C...
About this update from Calfrac Well Services Ltd.
[{"type":"text","content":"\n\n\n\nCalfrac announces CDN$200 million debt-with-warrants financing\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\nCalfrac announces CDN$200 million debt-with-warrants financing\nCanada NewsWire\nCALGARY, June 10, 2016\n\n\n\nCALGARY, June 10, 2016 /CNW/ - Calfrac Well Services Ltd. (\"Calfrac\" or the \"Company\") (TSX–CFW) announced today that it has closed a debt-with-warrants financing with Alberta Investment Management Corporation (\"AIMCo\").  \n\nAIMCo, on behalf of certain of its clients, has provided Calfrac a CDN$200 million second lien senior secured term loan facility (the \"Term Loan\"). The Term Loan will mature on September 30, 2020, and will bear interest at the rate of 9% per annum, paid quarterly. Amortization payments equal to 1% of the original principal amount are payable annually, in equal quarterly installments, with the balance due on the final maturity date. Calfrac may elect to pay interest \"in kind\" or defer payment of interest for up to eight quarterly periods over the term of the loan, with such \"in kind\" or deferred interest then carrying a 12% per annum interest rate. The proceeds from the Term Loan were made available in a single draw, and amounts borrowed under the Term Loan that are repaid or prepaid will not be available for reborrowing.\n\nIn conjunction with the funding of the Term Loan, an aggregate of 6,934,776 warrants to purchase common shares of Calfrac have been issued to AIMCo, entitling it to acquire up to 6,934,776 common shares at a price of $4.14 per common share at any time prior to June 10, 2019.\n\nThe proceeds of the Term Loan will be used by Calfrac for working capital and general corporate purposes, including the repayment of all of Calfrac's current bank indebtedness under its syndicated revolving credit facilities, and the repayment of the borrowings of Calfrac Well Services (Argentina) S.A. The financing also positions Calfrac to assess opportunities to repurchase some of its unsecured senior notes due 2020 if they become available at a price that Calfrac finds advantageous.\...