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Western Energy Services Corp. Announces the Closing of Debt Financing, Private Placement, Bought Deal Financing, and Credit Facility Amendments
Western Energy Services Corp. Announces the Closing of Debt Financing, Private Placement, ...
About this update from Western Energy Services Corp.
[{"type":"text","content":"\n\n\n\nWestern Energy Services Corp. Announces the Closing of Debt Financing, Private Placement, Bought Deal Financing, and Credit Facility Amendments\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, Oct. 17, 2017\n\n\n\nCALGARY, Oct. 17, 2017 /CNW/ - Western Energy Services Corp. (\"Western\") (TSX: WRG) is pleased to announce that it has completed its previously announced financings with Alberta Investment Management Corporation (\"AIMCo\") providing for a $215 million second lien senior secured term loan facility (the \"Second Lien Facility\") and a private placement (the \"Private Placement\") of 9.1 million common shares of Western (\"Common Shares\") at a price of $1.25 per Common Share for gross proceeds of $11,375,000. In conjunction with the closing of the Second Lien Facility, Western has issued 7,099,546 warrants to purchase Common Shares to AIMCo (the \"Warrants\"). Each Warrant will entitle AIMCo to acquire one Common Share at an exercise price per Common Share equal to $1.77 at any time prior to October 17, 2020.\n\nWestern has also closed its previously announced bought deal offering of Common Shares (the \"Bought Deal\"). Pursuant to the Bought Deal, Western issued 9.1 million Common Shares at a price of $1.25 per Common Share for gross proceeds of $11,375,000. The syndicate of underwriters for the Bought Deal was led by Peters & Co. Limited.\n\nAdditionally, Western has completed a number of amendments to its credit facilities, led by HSBC Bank Canada, including the following:\n\n\nExtended the maturity of its revolving credit facility (the \"Revolving Facility\") and its committed operating line (the \"Operating Facility\" and together with the Revolving Facility, the \"Credit Facilities\") to December 17, 2020;\nIncreased the limit of the Revolving Facility from $50.0 million to $70.0 million, while the $10.0 million Operating Facility limit remains unchanged;\nThe interest coverage and current ratio covenants have been permanently removed;\nA debt service coverage covenant has been added, which is calculated based on EB...