Business
Calfrac Obtains Interim Order in Connection with Recapitalization Transaction And Announces Meetings
Calfrac Obtains Interim Order in Connection with Recapitalization Transaction And Announce...
About this update from Calfrac Well Services Ltd.
[{"type":"text","content":"\n\n\n\nCalfrac Obtains Interim Order in Connection with Recapitalization Transaction And Announces Meetings\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, AB, Aug. 7, 2020\n\n\n\nCALGARY, AB, Aug. 7, 2020 /CNW/ - Calfrac Well Services Ltd. (\"Calfrac\" or the \"Company\") (TSX: CFW) announces that it has obtained an interim order in connection with the  Company's previously announced recapitalization transaction (the \"Recapitalization Transaction\") to be implemented pursuant to a plan of arrangement (the \"Plan of Arrangement\") under the Canada Business Corporations Act (\"CBCA\"), as more particularly described in the Company's July 14, 2020 press release (the \"July 14 Press Release\") and the Company's July 22, 2020 press release (the \"July 22 Press Release\"). Key terms of the Recapitalization Transaction, including the $60 million private offering (\"Offering\") of 10% senior secured convertible payment-in-kind notes of Calfrac (\"New 1.5 Lien Notes\"), are described in the July 14 Press Release. The Recapitalization Transaction now has the support of holders (the \"Supporting Noteholders\") of approximately 78% of the outstanding 8.5% senior unsecured notes due 2026 of Calfrac Holdings LP (the \"Senior Unsecured Notes\") as compared to the 50% support disclosed in the July 14 Press Release and 66% support disclosed in the July 22 Press Release. The Supporting Noteholders have entered into support agreements with the Company and have agreed to vote in favour of and support the Recapitalization Transaction and Plan of Arrangement, subject to certain conditions.\nThe Calfrac Board has unanimously recommended that the holders of Senior Unsecured Notes (the \"Senior Unsecured Noteholders\") and the holders (the \"Shareholders\") of the Company's common Shares (\"Common Shares\") support and vote in favour of the Recapitalization Transaction. \nHowever, and as disclosed in the August 4, 2020 press release, the Company has formed a special committee of independent directors (the \"Special Committee\") to evaluate the alternative...