Calfrac Well Services Ltd. (TO: CFW) closed the private placement through Calfrac Holdings LP, indirectly wholly owned by Calfrac, of $150 million 7.5% senior notes due 2020 sold at 99.625% of the aggregate principal ammount plus accrued interest from June 1.
The notes were issued as additional notes under the indenture pursuant to which Calfrac Holdings previously issued US $450 million 7.5% senior notes due 2020. The notes will be treated together with the existing notes as a single series of debt securities, and will have the same terms as and be fungible with the existing notes. Calfrac and Calfrac Well Services Corp., its wholly owned subsidiary and a Colorado corporation, will fully and unconditionally guarantee the notes.
Fixed interest on the notes is payable on June 1 and Dec. 1 of each year. The notes will mature on Dec. 1, 2020.
Net proceeds will be used to repay indebtedness under its credit facilities that was incurred in connection with its acquisition of all of the operating assets of Mission Well Services LLC.
The notes were offered to qualified institutional investors and to certain non-U.S. persons in transactions outside the U.S. pursuant to the Securities Act. Any offers of the notes will be made only by means of a confidential offering memorandum. The notes will not be registered under the Securities Act or any applicable state securities law, and may not be offered or sold in the U.S. absent registration under the Securities Act and applicable state securities laws or pursuant to available exemptions from such registration requirements.
Calfrac Well Services Ltd. provides specialized oilfield services in Canada, the U.S., Russia, Mexico, Argentina, and Colombia. The company is headquartered in Calgary.