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Weekly OFS Newsletter

News Items Ending April 3, 2018


 

Mergers and Acquisitions

  • Enterprise Group, Inc. (TSX:E) closed its previously reported $20.6 million sale of its trenchless solutions business unit, Calgary Tunnelling and Horizontal Augering (CTHA) to a private arm’s length purchaser. CTHA was acquired by Enterprise in June 2013 for $13 million and has generated approximately $60 million in revenue for Enterprise. All proceeds from the transaction will be used to reduce Enterprise’s debt.
  • Keyera Corp. (TSX:KEY) is acquiring Encana Corp.’s (TSX:ECA) Pipestone liquids hub and the planned Pipestone processing facility, located near Grande Prairie, AB. Keyera will acquire and fund the remaining development costs of the hub, which is estimated at $105 million. Encana is responsible for the construction of the project and will initially operate it. Both companies agreed to a 20-year infrastructure development and midstream service agreement for the Pipestone Montney development, with Keyera providing processing services to Encana under a long term, fee-for-service contract.

 

Financing

  • Zedcor Energy Inc. (TSXV:ZDC) signed a $13.5 million credit facility with ATB Financial. The credit facility consists of a $3 million operating loan facility, a $2.5 million term loan facility, and a new $8 million equipment financing facility. The equipment loan will be used to finance 75% of Zedcor’s purchase of new rental assets, for which there is strong demand.

 

Other

  • The Federal Court of Appeal dismissed the BC Government's bid to challenge a National Energy Board ruling to allow Kinder Morgan Canada Ltd. (TSX:KML) to bypass local bylaws during the construction of its pipeline expansion. The expansion was approved by the federal government in 2016, which will triple the amount of crude flow from Alberta to a port facility in Burnaby, BC. The BC Government has also been ordered to pay for the legal costs incurred. The City of Burnaby is now considering filing an appeal to the Supreme Court of Canada.
  • Whitecourt, AB based Storm Rentals, an oilfield service and rental company, was placed in receivership on March 21, 2018 on application by RBC. BDO has been appointed receiver and MLT Aikins LLP is serving as counsel to the applicant.
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