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Weekly OFS Newsletter

News Items Ending May 28, 2018


 

Mergers & Aquisitions

  • Keyera Corp. (TSX:KEY) through its subsidiary Keyera Energy Inc. has acquired a logistics and liquids blending terminal near Tulsa, OK for $90 million. The terminal handles the receipt, blending and delivery of diluent used in pipelines to transport viscous crude oil more efficiently. The acquisition is aligned with Keyera’s US strategy of expanding its liquid infrastructure in key US liquid hubs. $80 million will be paid upon closing, with the remaining balance paid over five years.

 

Financing

 

  • Source Energy Services Ltd. (TSX:SHLE) arranged a $40 million private placement of its 10.5% senior secured first lien notes due in Dec. 2021. The notes are being offered by wholly owned subsidiaries of Source. Source intends to use the net proceeds from the offering to repay drawn amounts on its existing credit facilities, which may in turn be used for general corporate purposes, financing working capital and capital expenditures.
  • Tervita Corp. announced the pricing of its USD $250 million offering of 7.625% senior secured notes due in 2021. The notes were issued under Tervita’s subsidiary, Tervita 2018 Escrow Corp. that was formed for the purposes of completing the offering. The offering is made in connection with Tervita’s previously announced acquisition of Newalta Corp. (TSX:NAL). The net proceeds will be used to fund the refinancing of Newalta’s debt and transaction related expenses.

 

 

Other

  • The BC government filed a constitutional challenge of Alberta’s Preserving Canada’s Economic Prosperity Act based on the province’s public interest. The act would empower the Alberta Minister of Energy to control the amount of crude oil and natural gas exports into other provinces. Click here for the statement of claim filed.
  • The BC Supreme Court has dismissed legal challenges filed by the City of Vancouver and the Squamish nation against the Kinder Morgan Trans Mountain expansion project. The court found the province of BC acted reasonably in issuing an environmental assessment certificate to Kinder Morgan in January 2017, two months after the federal government approved the project. The City of Vancouver has also been ordered to pay Kinder Morgan for its legal costs.
  • The National Energy Board (NEB) has approved the construction of Transcanada Corp.’s (TSX:TRP) $1.4 billion North Montney Mainline project that will move natural gas from British Columbia into Alberta. The project was originally designed to transport gas westwards to LNG export projects on the BC coast, but these projects have been delayed or cancelled. This caused TransCanada to vary its request to ship gas produced in BC eastwards to market.
  • Calgary based Mustang Well Services Ltd., an oil and gas well servicing company was placed in receivership on May 17, 2018 on application by ATB Financial. FTI Consulting was appointed receiver and manager of all the assets, undertakings and properties of Mustang, KKSR Enterprises Ltd., Complete Oilfield Manufacturing Inc. and Reaction Oilfield Supply (2012) Ltd. The counsel is Gowling WLG for the applicant and Cassels Brock for the receiver.
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