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Calfrac announces $27.5 million bought deal private placement
Calfrac announces $27.5 million bought deal private placement Calfrac announces $2...
About this update from Calfrac Well Services Ltd.
[{"type":"text","content":"\n\n\n\nCalfrac announces $27.5 million bought deal private placement\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.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\nCalfrac announces $27.5 million bought deal private placement\nCanada NewsWire\nCALGARY, Dec. 16, 2015\n\n\n\nNOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES\n\n\n\nCALGARY, Dec. 16, 2015 /CNW/ - Calfrac Well Services Ltd. (\"Calfrac\") (TSX–CFW) is pleased to announce that it has entered into an agreement with Peters & Co. Limited, as lead underwriter on behalf of a syndicate of underwriters including HSBC Securities (Canada) Inc., RBC Capital Markets, AltaCorp Capital Inc., CIBC World Markets Inc., Scotia Capital Inc. and FirstEnergy Capital Corp. (collectively, the \"Underwriters\"), pursuant to which the Underwriters have agreed to purchase, on a bought deal private placement basis, 20,370,370 common shares of Calfrac (\"Shares\") at a price of $1.35 per Share for total gross proceeds of approximately $27.5 million (the \"Offering\").\n\nThe net proceeds of the Offering are expected to be held in a segregated account such that they may be utilized in the calculation of EBITDA towards Calfrac's covenant to maintain a specified funded debt to EBITDA ratio (\"Leverage Ratio\"). The application of new equity issue proceeds in this manner, referred to as an \"Equity Cure\", may take place in any of the quarters ending prior to and including December 31, 2017, subject to certain conditions. If the net proceeds are not utilized as an Equity Cure, it is expected that they will be used by Calfrac to fund capital expenditures, to reduce Calfrac's outstanding indebtedness and/or for general working capital and corporate purposes.\n\nCalfrac's largest single shareholder, Matco Investments Ltd., will be participating in the Offering to at least its effective pro rata ownership percentage (20.45%).  The Offering is scheduled to close on or about December 22, 2015 and is subject to customary conditions, including receipt of all necessary regulatory approvals and the ap...