Western Energy Services Corp. announces private offering and pricing of senior unsecured notes
January 20 2012 - 1:51AM
PR Newswire (Canada)
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/ CALGARY, Jan. 20, 2012 /CNW/ -
Western Energy Services Corp. ("Western") announced today that it
has priced a private offering of C$175.0 million aggregate
principal amount of 7⅞% senior unsecured notes due
January 30, 2019 (the "Notes"). The Notes will be issued
at par. Western intends to use the net proceeds from the offering
to repay all of its outstanding indebtedness under its secured
credit facilities and for general corporate purposes. The
offering is expected to close on January 30, 2012. The offering is
being underwritten by RBC Capital Markets, as sole lead bookrunning
manager, in a syndicate that includes HSBC Securities (Canada)
Inc., AltaCorp Capital Inc. and GMP Securities L.P. The Notes will
be sold in Canada on a private placement basis pursuant to certain
prospectus exemptions. The Notes will be sold in the United
States and to U.S. Persons only to "qualified institutional buyers"
in accordance with Rule 144A under the United States Securities Act
of 1933, as amended (the "Securities Act"), and outside the United
States to persons other than U.S. Persons in reliance on Regulation
S under the Securities Act. The offer and sale of the Notes
will not be registered under the Securities Act or any state
securities laws and the Notes may not be offered or sold in the
United States or to, or for the account or benefit of, U.S.
Persons, absent registration or an applicable exemption from the
registration requirements of the Securities Act and applicable
state securities laws. As a result of the issuance of the Notes,
Western is voluntarily reducing its revolving credit facility from
C$150 million to C$125 million. Western's operating facility
of C$10 million will remain unchanged. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy
the Notes, nor shall there be any offer or sale of the Notes in any
jurisdiction in which such offer, solicitation or sale would be
unlawful. About Western Energy Services Corp.: Western is an
oilfield services company which provides contract drilling services
through its wholly-owned subsidiaries Horizon Drilling Inc. in
Canada and Stoneham Drilling Corporation in the United
States. In addition, Western has commenced operations of its
wholly-owned subsidiary Matrix Well Servicing Inc. with the first
two of five next generation well servicing rigs now delivered.
FORWARD-LOOKING STATEMENTS AND INFORMATION: This press release
contains forward-looking statements and forward-looking information
within the meaning of applicable securities laws. All statements
other than statements of historical fact contained in this press
release may be forward-looking statements and forward-looking
information. In particular, forward-looking information and
statements in this press release include, but are not limited to,
the timing and completion of the offering of Notes and the use of
the net proceeds from the offering. These forward-looking
statements and information are based on certain key expectations
and assumptions made by Western, including the assumption that the
offering will be completed. Although Western believes that the
expectations and assumptions on which such forward-looking
statements and information are based are reasonable, undue reliance
should not be placed on the forward-looking statements and
information as Western cannot give any assurance that they will
prove to be correct. Since forward-looking statements and
information address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Actual
results could differ materially from those currently anticipated
due to a number of factors and risks. These include, but are not
limited to, the risk that the offering of Notes will not be
completed as proposed or at all and general economic, market and
business conditions. Readers are cautioned that the foregoing list
of risks and uncertainties is not exhaustive. Additional
information on these and other risk factors that could affect
Western's operations, financial results and the completion of the
offering are included in Western's annual information form and the
other disclosure documents filed by Western with securities
regulatory authorities which may be accessed through the SEDAR
website at www.sedar.com. The forward-looking statements and
information contained in this press release are made as of the date
hereof and Western does not undertake any obligation to update
publicly or revise any forward-looking statements or information,
whether as a result of new information, future events or otherwise,
unless so required by applicable securities laws. Western
Energy Services Corp. CONTACT: Dale E. Tremblay Alex MacAusland
Jeffrey K. BowersChief Executive Officer President and COO VP
Finance and CFO403.984.5929 403.984.5932
403.984.5933dtremblay@wesc.ca amacausland@wesc.ca
jbowers@wesc.caWestern Energy Services Corp.900, 606 - 4th Street
S.W.Calgary, Alberta T2P 1T1Ph: 403.984.5916 Fax: 403.984.5917
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