Weekly OFS Newsletter
News Items Ending May 14, 2018
Mergers and Acquisitions
Gibson Energy Inc. (TSX:GEI) closed the sale of its US energy services businesses, including its US Environmental Services and US seismic assets. The sale was completed through two separate transactions for gross proceeds of $125 million.
MATRRIX Energy Technologies Inc. (TSXV:MXX) announced the $5.7 million acquisition of Red Dog Drilling Inc.’s assets used in connection with its land-based oil drilling and gas drilling operations. MATRRIX is acquiring two heavy telescopic double drilling rigs, one cantilever triple drilling rig, one cantilever double drilling rig and related drilling equipment. The acquisition will be paid with $5 million in cash and the remaining in common shares.
Calgary, AB based environmental services provider New West Energy Services Inc. (TSXV:NWE) announced that its primary capital and equipment financing partner, Connecticut based Nations Equipment Finance of Norwalk will acquire an equity stake in New West. New West will issue 11.8 million common shares to Nations to repay outstanding debt, which represents ~27% in New West’s common shares.
- Calfrac Well Services Ltd. (TSX:CFW) announced that its subsidiary, Delaware based Calfrac Holdings LP is offering USD $650 million in senior notes due 2026. The net proceeds from the offering will be used to fund a tender offer to purchase all its outstanding 7.5% senior notes due 2020, and the balance will be used to partially fund the repayment of its $196.5 million second lien senior secured term loan.
- Sherwood Park, AB based Vertex Resource Group Ltd. (TSXV:VTX) announced a new $70 million senior secured credit facility with a syndicated group of senior lenders over a three-year term. The agreement also provides for an additional $20 million accordion facility to support Vertex’s future growth initiatives. The new financing will replace existing credit facilities and allow Vertex to capitalize on potential organic and acquisition opportunities. The refinancing is estimated to result in annual cost savings of $2 million.
Enbridge Inc. announced the sale of a minority stake in a basket of its North American renewable power assets to the Canada Pension Plan Investment Board (CPPIB) for $1.75 billion. The sale includes exposure to two German offshore wind projects as well. Enbridge separately announced the sale of its midstream business Midcoast Operating LP to an affiliate of ArcLight Capital Partners for $1.44 billion. The dispositions are aligned with Enbridge’s target to divest $3 billion in assets and also eliminate $500 million capital requirements previously included in its funding plans.
Calgary, AB based Global Flow Inc., a provider of electrical, instrumentation, fabrication and automation solutions for the energy industry in Western Canada filed a notice of intention (NOI) listing $4.9 million in liabilities, including $3 million to GF Direct Lending. Grant Thornton is the proposal trustee. Counsel is Gowling WLG for GF Direct Lending, DLA Piper for the company and Bennett Jones for the proposal trustee.
Royal Dutch Shell plc has agreed to sell its stake in Canadian Natural Resources Ltd. (TSX:CNQ) for total pre-tax proceeds of $4.3 billion. The sale of its stake will assist in reducing its debt after recent acquisitions. The sale is also aligned with Shell’s repositioning strategy to focus on cleaner natural gas over carbon intensive assets such as oil sands.