CALGARY, ALBERTA--(Marketwired - Nov. 28, 2016) - Savanna Energy Services Corp. ("Savanna") (TSX:SVY) announces that Alberta Investment Management Corporation ("AIMCo") has advised it that AIMCo does not intend to consent to a change of control of Savanna that may result from Total Energy Services Inc.'s previously announced intention to make an offer for the outstanding common shares of Savanna (the "Common Shares"). In the event of a change of control within six months of the closing date of the previously announced $200 million second lien senior secured term loan facility (the "Term Loan"), all amounts outstanding under the Term Loan would become immediately due and payable plus an amount of 3% of the $200 million commitment amount.
The Corporation also announces that the Corporation and AIMCo have agreed to fix the exercise price of the 7 million common share purchase warrants (the "Warrrants") to be issued to AIMCo on the initial draw under the Term Loan at $2.50. Pursuant to the original commitment with AIMCo, the terms of the Warrants provided Savanna the option to require AIMCo to exercise all or any portion of the Warrants provided the volume weighted average price of the Common Shares is greater than the exercise price of the warrants for 60 consecutive calendar days. The amendments also provide that the 60 consecutive calendar days will exclude any and all calendar days during which a change of control transaction has been publicly announced, proposed or made and remains outstanding.
AIMCo has advised Savanna that it remains supportive of Savanna and is fully committed to completing the previously announced financings.
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 closing of the previously announced financings and AIMCo's current intentions. These forward-looking statements and information are based on certain key expectations and assumptions made by Savanna including receipt of all third party, including lender consent, and regulatory approvals. 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 inability to obtain regulatory approvals, 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 Savanna'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.