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Press release from CNW Group

Ensign Energy Services Inc. announces closing of private placement of senior unsecured notes

Wednesday, February 22, 2012

Ensign Energy Services Inc. announces closing of private placement of senior unsecured notes17:48 EST Wednesday, February 22, 2012/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/CALGARY, Feb. 22, 2012 /CNW/ - Ensign Energy Services Inc. ("Ensign" or the "Company") is pleased to announce that it has closed a private placement of US$300 million in senior unsecured notes (the "Private Placement").  The Private Placement consists of: US$100 million in five year notes with an interest rate of 3.43% and a maturity date of February 22, 2017; US$100 million in seven year notes with an interest rate of 3.97% and a maturity date of February 22, 2019; and US$100 million in ten year notes with an interest rate of 4.54% and a maturity date of February 22, 2022.  The notes are unsecured and rank equally with Ensign's bank facilities.Ensign used the net proceeds of the Private Placement to repay US$300 million of the Company's recent US$400 million term facility that was put in place for the acquisition of the Rowan Land Drilling division and for general corporate purposes.HSBC Securities (USA) Inc. acted as the sole bookrunner and lead private placement agent; and J.P. Morgan Securities LLC and RBC Capital Markets, LLC acted as co-placement agents for the Private Placement.The notes have not been registered under the Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements of the Securities Act. The notes have not been and will not be qualified for distribution to the public under applicable Canadian securities law and any offer and sale of the notes in Canada will be made on a basis that is exempt from the prospectus requirement of such securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the notes in a jurisdiction in which such offer, solicitation or sale would be unlawful.Forward Looking Statement DisclaimerThis press release contains forward-looking statements, including, but not limited to, statements regarding the use of proceeds. These forward-looking statements are based on Ensign's current assumptions and beliefs. However, these forward-looking statements are subject to, and may be affected by, numerous risks and uncertainties, some of which are beyond Ensign's control. Risks that could cause or contribute to these differences include the factors described in Ensign's public reports and filings, which are available under Ensign's profile at www.sedar.com. Forward-looking statements are subject to change and Ensign does not undertake to update, correct or revise any forward-looking statements as a result of any new information, future events or otherwise, except as may be required by applicable law.Ensign Energy Services Inc. is an international oilfield services contractor based in Calgary, Alberta. Ensign's Common Shares (symbol: ESI) are publicly traded through the facilities of the Toronto Stock Exchange.For further information: Ensign Energy Services Inc. 400 - 5th Avenue S.W., Suite 1000 Calgary, Alberta  T2P 0L6 Canada Mr. Glenn Dagenais, Chief Financial Officer Telephone: (403) 262-1361