CALGARY, Feb. 1, 2018 /CNW/ - Western Energy Services
Corp. ("Western") (TSX: WRG) is pleased to announce that it
has drawn on its $215 million, 7.25%
second lien senior secured term loan facility (the "Second Lien
Facility") with Alberta Investment Management Corporation
("AIMCo"). The Second Lien Facility was drawn on
January 31, 2018 and will mature in
five years. The Second Lien Facility, cash on hand and funds
available under existing credit facilities were used to fund the
redemption of Western's $265 million,
77/8% senior unsecured notes due in January 2019 (the "Senior Notes")
The draw on the Second Lien Facility and redemption of the
Senior Notes represent the culmination of the comprehensive
financings announced on September 22,
2017. As a result of these transactions, Western has
extended the maturity date on its debt and has improved its
leverage metrics. Additionally, Western will save approximately
$5.3 million annually in cash
interest expense due to the decreased debt level and lower interest
rate on the Second Lien Facility as compared to the Senior
Notes.
About Western
Western is an oilfield service company
which provides contract drilling services in Canada through its Horizon Drilling division
and in the United States through
its wholly-owned subsidiary, Stoneham Drilling Corporation. In
Canada, Western also provides well
servicing through its Eagle Well Servicing division and provides
oilfield rental services through its Aero Rental Services
division.
Forward Looking Statements and Information
This press release contains forward-looking statements and
forward-looking information within the meaning of applicable
securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "may", "will", "project",
"should", "believe", "plans", "intends", "result" and similar
expressions are intended to identify forward-looking information or
statements. More particularly and without limitation, this press
release contains forward-looking statements and information
relating to the use of the net proceeds of the Second Lien
Facility, the expected redemption of the Senior Notes and interest
expense savings. These forward-looking statements and information
are based on certain key expectations and assumptions made by
Western. 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, risks associated with
general economic conditions, the demand for Western's services,
volatility in market prices for oil and natural gas and the effect
of this volatility on the demand for oilfield services generally,
currency exchange rate risk, compliance with covenants and/or
repayment obligations under the Credit Facilities and the Second
Lien Facility, changes in legislation, dependence on, and
concentration of, major customers, and the creditworthiness and
performance by the Western's counterparties and customers.
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 or
financial results are included in Western's annual information form
and may be accessed through the SEDAR website (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.
SOURCE Western Energy Services Corp.