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Calfrac seeks to swap 8½% senior notes for 10 7/8% second-lien notes
By Marisa Wong
Los Angeles, Jan. 28 – Calfrac Well Services Ltd. said indirectly wholly owned subsidiary Calfrac Holdings LP is offering to exchange its existing 8½% senior unsecured notes due 2026 (Cusip: 12958RAD9) for up to $100 million of newly issued 10 7/8% second-lien secured notes due 2026, according to a press release and a market source.
Calfrac and Calfrac Well Services Corp., its wholly owned subsidiary, will guarantee the new notes.
The modified Dutch auction exchange offer will expire at 11:59 p.m. ET on Feb. 24.
Holders will have the opportunity to pick an exchange ratio at which they are willing to exchange some or all of their old notes for new notes. The accepted ratio will range from $550 to $600 principal amount of new notes per $1,000 principal amount of old notes.
The bid ratio will include an early tender premium of $40 principal amount of new notes for each $1,000 of old notes tendered prior to 5 p.m. ET on Feb. 7, the early tender time.
Holders will also receive cash equal to accrued interest to but excluding the early settlement date. Holders tendering after the early tender time will not be entitled to receive any interest accruing after the early settlement date, which is expected to be Feb. 14.
Tenders may be withdrawn prior to 5 p.m. ET on Feb. 7.
The Rule 144A and Regulation S exchange offer is subject to some conditions but is not conditioned on any minimum principal amount of old notes being tendered.
Global Bondholder Services (212 430-3774) is the information agent.
Calfrac is a Calgary, Alta.-based company that provides specialized oilfield services to exploration and production companies.
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