By Lisa Kerner
Charlotte, N.C., Feb. 22 - Ensign Energy Services Inc. announced it closed a private placement of $300 million of senior notes.
The notes were issued as:
• $100 million of five-year notes with an interest rate of 3.43%;
• $100 million of seven-year notes with an interest rate of 3.97%; and
• $100 million of 10-year notes with an interest rate of 4.54%.
The unsecured notes rank equally with Ensign's bank facilities.
HSBC Securities (USA) Inc. acted as the bookrunner and lead private placement agent. J.P. Morgan Securities LLC and RBC Capital Markets, LLC were co-placement agents.
Ensign used the proceeds of the private placement to repay $300 million of the recent $400 million term facility used for the acquisition of the Rowan Land Drilling division. Proceeds were also used for general corporate purposes.
The notes have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements, according to an Ensign news release.
Ensign Energy Services is an oilfield services contractor based in Calgary, Alta.
| Issuer: | Ensign Energy Services Inc.
|
| Issue: | Senior notes
|
| Amount: | $300 million
|
| Agents: | HSBC Securities (USA) Inc. (lead), J.P. Morgan Securities LLC and RBC Capital Markets, LLC
|
| Distribution: | Private placement
|
|
|
| Five-year notes
|
| Amount: | $100 million
|
| Maturity: | Feb. 22, 2017
|
| Coupon: | 3.43%
|
|
|
| Seven-year notes
|
| Amount: | $100 million
|
| Maturity: | Feb. 22, 2019
|
| Coupon: | 3.97%
|
|
|
| 10-year notes
|
| Amount: | $100 million
|
| Maturity: | Feb. 22, 2022
|
| Coupon: | 4.54%
|
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