Calfrac Well Services may buy back notes due 2020 using loan proceeds

By Susanna Moon

Chicago, June 10 – Calfrac Well Services Ltd. said it may look for opportunities to buy back some of its senior notes due 2020 using proceeds of a new term loan.

Calfrac closed a debt-with-warrants financing that included a C$200 million 9%/12% second-lien senior secured term loan due Sept. 30, 2020 with Alberta Investment Management Corp., or Aimco, according to a company announcement.

Proceeds will be used for working capital and general corporate purposes, including the repayment of all of Calfrac's bank debt under its syndicated revolving credit facilities and the repayment of the borrowings of Calfrac Well Services (Argentina) SA.

“The financing also positions Calfrac to assess opportunities to repurchase some of its unsecured senior notes due 2020 if they become available at a price that Calfrac finds advantageous,” the release noted.

As part of the arrangements with Calfrac's lending syndicate, any repurchase of unsecured notes is limited to C$200 million and subject to a minimum liquidity requirement of C$100 million. Any repurchase of notes must result in a reduction of annual net interest costs on a dollar-for-dollar basis.

Calfrac is a Calgary, Alta.- based company that provides specialized oilfield services to exploration and production companies.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.