Business
Calfrac announces US$650 million offering of senior notes, accordion exercise and intention to repay second lien term loan
Calfrac announces US$650 million offering of senior notes, accordion exercise and intentio...
About this update from Calfrac Well Services Ltd.
[{"type":"text","content":"\n\n\n\nCalfrac announces US$650 million offering of senior notes, accordion exercise and intention to repay second lien term loan\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\n\nCanada NewsWire\nCALGARY, May 9, 2018\n\n\n\nCALGARY, May 9, 2018 /CNW/ - Calfrac Well Services Ltd. (\"Calfrac\") (TSX-CFW) is pleased to announce that Calfrac Holdings LP (\"Calfrac Holdings\"), a Delaware limited partnership which is indirectly wholly owned by Calfrac, intends to offer, subject to market and other conditions, up to US$650 million aggregate principal amount of senior notes due 2026 (the \"notes\"), which will be issued under a new indenture. Calfrac and Calfrac Well Services Corp., its wholly owned subsidiary and a Colorado corporation, will fully and unconditionally guarantee the notes. \n\nThe notes and the related guarantees will be sold to qualified institutional investors pursuant to Rule 144A under the Securities Act of 1933, as amended (the \"Securities Act\") and to certain persons other than \"U.S. persons\" in transactions outside the United States pursuant to Regulation S under the Securities Act. Any offers of the notes and related guarantees will be made only by means of a confidential offering memorandum. The notes will not be registered under the Securities Act or the securities laws of any other jurisdiction, and may not be offered or sold in the United States absent registration under the Securities Act and applicable state securities laws or pursuant to available exemptions from such registration requirements. \n\nCalfrac Holdings intends to use a portion of the net proceeds from the offering of the notes to fund a tender offer to purchase for cash up to all of its outstanding 7.50% senior notes due 2020 (the \"Existing Notes\"), with the balance to be used to partially fund the repayment in full of the remaining C$196.5 million principal amount of Calfrac's second lien senior secured term loan facility (the \"Term Loan\"). Calfrac Holdings intends to redeem any Existing Notes that remain outstanding following the expiration of the tende...