Business
Western Energy Services Corp. Announces Completion of $75 million Bought Deal Financing and Private Company Acquisition
Western Energy Services Corp. Announces Completion of $75 million Bought Deal Financing and Priva...
About this update from Western Energy Services Corp.
[{"type":"text","content":"\n\n\n\nCALGARY, Mar. 18, 2010 (Canada NewsWire Group) -- /CNW/ -- Western Energy Services Corp. (\"Western\" or the \"Company\") (TSX Venture: WRG) is pleased to announce that it has closed the previously announced $75 million bought deal financing (the \"Financing\") with a syndicate of underwriters co-led by Cormark Securities Inc. and Raymond James Ltd. and including FirstEnergy Capital Corp., Peters & Co. Limited and Thomas Weisel Partners Canada Inc. (collectively, the \"Underwriters\") and has closed the acquisition of Horizon Drilling Inc. (\"Horizon\") a privately held company which owns and operates oil and natural gas drilling rigs, for a total purchase price of approximately $66 million, including the assumption of debt.Bought Deal Financing---------------------Pursuant to the Financing, the Corporation issued 375 million common shares (\"Western Shares\") at a price of $0.20 per share for gross proceeds of $75 million. A fee of 5% of the gross proceeds of the Financing was paid to the Underwriters. The net proceeds of the Financing are being used to partially fund the acquisition of Horizon.Horizon Acquisition-------------------Western has taken up approximately 95% of Horizon's outstanding Class A shares (\"Horizon Shares\"), being the shares tendered to Western's offer dated March 1, 2010 to acquire all of the outstanding Horizon Shares on the basis of $1.50 for each Horizon Share (the \"Horizon Offer\"). Western will acquire all of the remaining Horizon Shares pursuant to the compulsory acquisition provisions of the Business Corporations Act (Alberta) (the \"Compulsory Acquisition\"). The purchase price for the Horizon Shares is being funded with the proceeds from the Financing. An aggregate of $39,367,500 is being paid to Horizon shareholders for the Horizon Shares taken up pursuant to the Horizon Offer and it is anticipated a further $2,062,500 will be paid to Horizon shareholders in connection with those Horizon Shares acquired pursuant to the Compulsory Acquisition.Western continues to work towards the completion of the previously announced acquisition of Cedar Creek Drilling Ltd.FORWARD-LOOKING INFORMATIONThis press release contains certain statements or disclosures relating to the Company that are based on the expectations of the Company as well as assumptions made by and information currently available to ...