Savanna Energy Services Corp.
TSX : SVY

Savanna Energy Services Corp.

December 13, 2016 08:49 ET

Savanna Announces Closing of Debt Financing, Private Placement and Bought Deal Financing

CALGARY, ALBERTA--(Marketwired - Dec. 13, 2016) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW.

Savanna Energy Services Corp. ("Savanna") (TSX:SVY) is pleased to announce that it has completed its previously announced financings with Alberta Investment Management Corporation ("AIMCo") providing for a $200 million second lien senior secured term loan facility and a private placement (the "Private Placement") of 13 million common shares of Savanna ("Common Shares") at a price of $1.45 per Common Share for gross proceeds of $18.85 million. The initial draw on the second lien facility was $105 million. In conjunction with the funding of the second lien facility, Savanna has issued 7 million warrants to purchase Common Shares to AIMCo, entitling AIMCo to acquire up to 7 million Common Shares at an exercise price of $2.50 per Common Share at any time prior to December 13, 2018.

Savanna has also closed its previously announced bought deal offering of Common Shares. Pursuant to the offering, Savanna issued 14.95 million Common Shares (including the issuance of 1.95 million Common Shares pursuant to the exercise of the over-allotment option in full) at a price of $1.45 per Common Share for gross proceeds of $21.68 million. The syndicate of underwriters was led by Peters & Co. Limited.

Net proceeds from the financings will be used to repay outstanding bank indebtedness, repurchase $62.515 million of Savanna's 7.00% senior unsecured notes due May 25, 2018 at a price of 101% of the principal amount thereof and for general corporate purposes.

About Savanna

Savanna is a leading contract drilling and oilfield services company operating in North America and Australia providing a broad range of drilling, well servicing and related services with a focus on fit for purpose technologies and industry-leading Aboriginal relationships.

About Alberta Investment Management Corporation (AIMCo)

AIMCo is one of Canada's largest and most diversified institutional investment managers with more than CDN$90 billion of assets under management. AIMCo was established on January 1, 2008 with a mandate to provide superior long-term investment results for its clients. AIMCo operates at arms-length from the Government of Alberta and invests globally on behalf of 31 pension, endowment and government funds in the Province of Alberta.

Cautionary Statements

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" 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 net proceeds of the financings. These forward-looking statements and information are based on certain key expectations and assumptions made by Savanna. Although Savanna 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 Savanna 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 Savanna'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 Savanna's credit facilities and senior note indenture, changes in legislation, dependence on, and concentration of, major customers, and the creditworthiness and performance by the Company'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 Savanna's operations or financial results are included in Savanna'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 Savanna 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.

The securities referenced herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or any state securities laws. This press release is not an offer of any securities for sale in the United States. The securities may not be offered or sold in the United States absent registration or an exemption from registration. The securities will not be publicly offered in the United States.

Contact Information

  • Savanna Energy Services Corp.
    Chris Strong
    President and Chief Executive Officer
    (403) 267-6728

    Savanna Energy Services Corp.
    Dwayne LaMontagne
    Executive Vice President and Chief Financial Officer
    (403) 214-5959