TSX: SHLE
CALGARY, May 31, 2018 /CNW/ - Source Energy Services Ltd.
(the "Company" or "Source") is pleased to announce that its
wholly-owned subsidiaries Source Energy Services Canada LP and
Source Energy Services Canada Holdings Ltd. have closed the
previously announced offering of an additional $50 million aggregate principal amount of 10.5%
senior secured first lien notes due December
15, 2021 (the "Notes") by way of private placement (the
"Private Placement"). The additional Notes were issued at a price
of $1,057.50 per $1,000 principal amount which represents an
effective yield of 7.953% to 2020. Source intends to use the net
proceeds from the offering to initially repay drawn amounts under
the Company's existing credit facilities, which in turn may be
redrawn for general corporate purposes and to fund working capital
and capital expenditures.
BMO Capital Markets and Scotiabank acted as joint book-running
managers for the Private Placement.
This press release is neither an offer to sell nor a
solicitation of an offer to buy the Notes, nor shall there be any
sale of these securities in any state or jurisdiction in which such
an offer, solicitation or sale would be unlawful prior to the
registration or qualification under the securities laws of any such
state or jurisdiction.
The Notes have not been registered under the Securities Act
of 1933, as amended (the "Securities Act"), or the securities
laws of any other jurisdiction, and may not be offered or sold in
the United States absent
registration or an applicable exemption from registration
requirements. The Notes were sold exclusively to qualified
institutional buyers in the United
States pursuant to Rule 144A under the Securities Act, to
non-U.S. persons in transactions outside the United States pursuant to Regulation S
under the Securities Act and pursuant to certain prospectus
exemptions in Canada.
ABOUT SOURCE ENERGY SERVICES
Source is a fully integrated producer, supplier and distributer
of high quality Northern White frac sand primarily to the Western
Canadian Sedimentary Basin. Source provides its customers with a
full end-to-end solution through its Wisconsin mine assets, processing facilities,
unit train capable rail assets, strategically located terminal
network and "last mile" logistics capabilities. Source's full
service approach allows customers to rely on its logistics
capabilities to increase reliability of supply and to ensure the
timely delivery of their growing frac sand requirements. In
addition to its transload terminal network and in-basin storage
capabilities, Source has also developed Sahara, a proprietary
wellsite mobile sand storage and handling system.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release constitute
"forward-looking information" and "forward-looking statements"
(collectively, "forward-looking statements") within the meaning of
applicable Canadian securities laws regarding, without limitation,
the Company's expectations, intentions, plans and beliefs,
including information as to the future financial or operating
performance of Source. In certain cases, forward-looking statements
can be identified by the use of words such as "plans",
"contemplates", "expects" or "does not expect", "is expected",
"budget", "goal", "scheduled", "estimates", "forecasts", "intends",
"anticipates" or "does not anticipate", or "believes" or variations
of such words and phrases, or state that certain actions, events or
results "may", "could", "would", "might" or "will" be taken, occur
or be achieved. Such forward-looking statements reflect
management's beliefs, estimates and opinions regarding Source's
future growth, results of operations, performance, and business
prospects and opportunities at the time such statements are made,
and Source takes no obligation to update forward-looking statements
if these beliefs, estimates and opinions or circumstances should
change. Forward-looking statements are necessarily based upon a
number of estimates and assumptions that, while considered
reasonable by Source, are inherently subject to significant
business, economic, competitive, political and social uncertainties
and contingencies. Forward-looking statements are not guarantees of
future performance. In particular, this press release contains
forward-looking statements pertaining to, but not limited to, the
use of proceeds from the Private Placement.
By their nature, forward-looking statements involve numerous
assumptions, known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or
achievements of Source to differ materially from those anticipated
by Source and described in forward-looking statements.
With respect to forward-looking statements contained in this
press release, various assumptions have been made. A number of
factors, risks and uncertainties could cause results to differ
materially from those anticipated and described herein.
Although Source has attempted to identify important factors that
could cause actual actions, events or results to differ materially
from those described in forward-looking statements, there may be
other factors that cause actions, events or results not to be as
anticipated, estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. The forward-looking statements
contained in this press release are expressly qualified by this
cautionary statement. Accordingly, readers should not place undue
reliance on forward-looking statements. These statements speak only
as of the date of this press release. Except as required by law,
neither the Company nor any of the underwriters undertakes any
obligation to publicly update or revise any forward-looking
statements.
SOURCE Source Energy Services
