Ensign Energy amends, extends C$37 million convertibles

By Taylor Fox

New York, March 29 – Ensign Energy Services Inc. amended and extended its C$37 million subordinated convertible debentures effective March 18, according to a news release.

In order to satisfy the requirements of Ensign’s Dec. 31 credit facility amendments and maintain a Nov. 25, 2022 maturity date of the amended credit facility, Ensign has amended the terms of the convertibles to extend the maturity date to May 1, 2023 from Jan. 31, ‎‎2022, increase the interest rate to 7.75% from 7% per annum and reduce the conversion ‎price to $1.75 from $7.00.

The effect of the amendments is that the ‎convertible debentures are convertible into up to 21,142,857 common shares, which is equal to 12.96% of the corporation's 163,118,758 ‎common shares currently outstanding.

As previously reported, Ensign amended and extended its existing $900 million credit facility by amending or replacing certain financial covenant ratios and extending the maturity date of the credit facility to Nov. 25, 2022.

As a condition to the credit facility amendment, if, on or before Sept. 30, the maturity date of the existing convertible debentures is not extended to a date no earlier than Feb. 26, 2023, then the maturity date of the credit facility shall automatically be amended to Nov. 29, 2021.

Ensign Energy Services is an oilfield services contractor based in Calgary, Alta.

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