CALGARY, ALBERTA--(Marketwired - March 27, 2017) - Savanna Energy Services Corp. ("Savanna") (TSX:SVY) today acknowledges Total Energy Services Inc.'s ("Total") announcement that it has satisfied its minimum tender condition of 50.1% pursuant to its unsolicited offer to purchase all of the common shares of Savanna (the "Savanna Shares") on the basis of 0.13 common shares of Total and $0.20 in cash for each Savanna Share (the "Total Offer") and has taken up the Savanna Shares tendered to the Total Offer.
On the acquisition of over 50% of the outstanding Savanna Shares, an event of default occurs under Savanna's first and second lien credit facilities. Savanna is in discussions with its lenders with respect to the impact of the event of default and expects the lenders will not immediately take steps with respect to the default.
Total has also announced that it has extended the period for the tender of additional Savanna Shares under the Total Offer to 12:00 p.m. on April 7, 2017.
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.
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 discussion with Savanna's lenders and the expectation for the lenders to not immediately take steps with respect to default. These forward-looking statements and information are based on certain key expectations and assumptions made by Savanna. Assumptions have been made with respect to the ability of Savanna to seek an interim solution with its lenders. 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, the failure to reach an interim solution with Savanna's lenders which would result in amounts owing to such lenders in being immediately due and payable.
Readers are cautioned that the foregoing list of risks and uncertainties is not exhaustive. 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.