Western Energy to get C$215 million second-lien term loan from Aimco

By Sarah Lizee

Olympia, Wash., Sept. 22 – Western Energy Services Corp. has entered agreements for a C$215 million second-lien senior secured term loan facility from Alberta Investment Management Corp. (Aimco), according to a company release.

The loan will mature five years from the draw date, which will be no later than Feb. 15, 2018.

Interest will be 7.25%, paid semi-annually.

The loan will amortize by 1% per year, payable quarterly beginning July 1, 2018.

Western may prepay the loan at a price of 105 starting two years after the draw date and with no prepayment premium after three years.

Western also issued warrants to Aimco for 7,099,546 common shares, exercisable for three years at a 45% premium to the volume-weighted average trading price of the shares for the five trading days before the issue of the warrants.

Closing of the loan is subject to completion of documentation and satisfaction of conditions.

Peters & Co. Ltd. acted as financial adviser.

Western Energy also arranged a bought deal equity offering and agreed to an equity private placement with Aimco.

In the bought deal, the company will sell 9.1 million common shares at C1.25 per share to raise C$11,375,000.

The private placement is for the same number of shares at the same price.

Proceeds from all the financings will be used, along with cash on hand to redeem the company’s 7 7/8% senior notes.

Western Energy is a Calgary, Alta.-based oilfield drilling company.

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