CALGARY, ALBERTA--(Marketwired - Nov. 25, 2016) - Savanna Energy Services Corp. ("Savanna") (TSX:SVY) confirms that it is aware of the announcement by Total Energy Services Inc. ("Total") that it intends, subject to a number of conditions, to make an unsolicited takeover bid for the outstanding common shares of Savanna ("Common Shares").
Savanna cautions that no formal offer has been presented to Savanna or its shareholders and there can be no certainty that an offer will be made or that a transaction will take place. Savanna's board of directors (the "Board") will consider and evaluate Total's offer if and when received and will respond in due course. The Board recommends that shareholders take no action until they have received further communication from the Board.
On November 22, 2016, Savanna announced a restructuring of its balance sheet, including that it had entered into agreements with Alberta Investment Management Corporation ("AIMCo") providing for a $200 million second lien senior secured term loan facility and a private placement of 13 million Common Shares at a price of $1.45 per Common Share for gross proceeds of $18.85 million. Savanna also announced that it had concurrently entered into an agreement with a syndicate of underwriters led by Peters & Co. Limited, pursuant to which the underwriters have agreed to purchase, on a bought deal basis, 13 million Common Shares at a price of $1.45 per Common Share for aggregate gross proceeds of $18.85 million. Savanna has also granted the underwriters an option to purchase up to an additional 1.95 million Common Shares to cover over-allotments, if any, exercisable in whole or in part at any time until 30 days after the date of closing of the offering. We look forward to closing the financings in due course.
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. These forward-looking statements and information are based on certain key expectations and assumptions made by Savanna including receipt of 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 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.