Weekly OFS Newsletter
News Items Ending July 3, 2018
Mergers & Aquisitions
- Calgary based New West Energy Services Inc. (TSXV:NWE), an oil and gas environmental services provider announced that its primary capital and equipment financing partner, Nations Equipment Finance has acquired an equity stake in New West. New West issued 11.8 million common shares in lieu of the repayment of $1.2 million debt owed to Nations, representing approximately 27% of New West’s common shares.
- Newalta Corp. (TSX:NAL) and Tervita Corp. received approval from the Court of Queen’s Bench of Alberta for the previously announced merger arrangements. The closing of the transaction is still subject to closing customary conditions, including approval under the Canadian Competition Act and is expected to be completed in Q3 2018.
- Essential Energy Services Ltd. (TSX:ESN) announced it has entered into an amended and restated credit facility agreement with a syndicate of lenders, providing an extension of its existing revolving secured credit facility until June 30, 2021. The primary amendments to the credit facility include a revision of certain financial covenants and equity cure provision, the removal of a borrowing base requirement and an increase in the commitment from $40 million to $50 million.
Enbridge Inc. (TSX:ENB) announced the approval of its expansion proposal to replace is aging Line 3 pipeline across northern Minnesota. Minnesota regulators voted unanimously to approve the project. Enbridge filed an approval to replace the pipeline due to increasing corrosion and cracking incidents. Due to these circumstances, Enbridge has only been running Line 3 at 50% of its 760,000 bbls/d capacity for security reasons and has only been transporting light crude.