Business
Western Energy Services Corp. Announces Restructuring of Credit Facilities and Private Placement of $3 Million of Convertible Debenture Units
/NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/ CALGARY,...
About this update from Western Energy Services Corp.
[{"type":"text","content":"\n\n\n\n/NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE\nUNITED STATES/\n\n\nCALGARY, Aug. 14 /CNW/ - Western Energy Services Corp. ("Western" or the\n"Company") is pleased to announce the following developments:\n\n\n- Western has entered into a conditional letter agreement with HSBC\n providing for, among other things, a further advance of $1,325,000\n and an interest only repayment period until September 30, 2009 and a\n reamortization of the Company's senior debt facility (the\n "Restructured Senior Facility");\n\n- Western is proceeding with, subject to the conditions noted below, a\n private placement offering of units ("Unit Offering), consisting of,\n in the aggregate, up to $3 million principal amount of convertible\n secured subordinated debentures (the "Debentures") and 30 million\n share purchase warrants (the "Warrants");\n\n- The restructuring of the current bridge loan facility (the "Bridge\n Loan") originally made available to its subsidiary, Western Energy\n Services of Texas Corp., which is guaranteed by Western.\n\n\nThe Unit Offering of the Debentures and Warrants will be placed with a\nsyndicate of investors lead by 1063645 Alberta Ltd. ("106 Alberta"), a company\ncontrolled, directly or indirectly, by Mr. Jon Waddell, a director of the\nCompany. Mr. John Halliwell, also a director of the Company, will participate\nin the Unit Offering. The Debentures will mature twenty-four months from the\ndate of issue (the "Issue Date"), bear interest at an annual rate of 7.0%\nwhich interest payments will be subordinated to the interest payments to HSBC\nunder the Restructured Senior Facility. The Debentures will be convertible\ninto common shares of Western ("Common Shares") at the option of the holder at\nany time prior to the maturity date at the conversion price of $0.10 per\nCommon Share for the first eight months from the Issue Date (the "Initial\nPeriod"), $0.15 per Common Share for the eight months following the Initial\nPeriod (the "Subsequent Period"), and $0.20 per Common Share for the eight\nmonths following the Subsequent Period. Each Warrant shall entitle the holder\nthereof to acquire one Common Share upon payment of the exercise price of\n$0.10 and shall expire 24 m...