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Press release from CNW Group

Western Energy Services Corp. announces private offering and pricing of additional senior unsecured notes

Friday, September 13, 2013

Western Energy Services Corp. announces private offering and pricing of additional senior unsecured notes

17:15 EDT Friday, September 13, 2013

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

CALGARY, Sept. 13, 2013 /CNW/ - Western Energy Services Corp. ("Western") (TSX: WRG) announced today that it has priced a private offering of $90.0 million aggregate principal amount of 7⅞% senior unsecured notes due January 30, 2019 (the "Notes").  The Notes will be issued at  $1,016.25 per $1000.00 principal amount, plus accrued interest from and including July 31, 2013. Western intends to use the net proceeds from the offering to repay its outstanding indebtedness under its secured credit facilities, incurred as a result of the acquisition of IROC Energy Services Corp. in April 2013, and for general corporate purposes. The offering is in addition to $175.0 million principal amount of the Notes which were issued on January 30, 2012 and is expected to close on September 18, 2013.

The offering is being underwritten by RBC Capital Markets, as sole lead bookrunning manager, in a syndicate that includes Scotia Capital Inc. and HSBC Securities (Canada) Inc.

The Notes will be sold in Canada on a private placement basis pursuant to certain prospectus exemptions. The Notes will be sold in the United States and only to U.S. Persons that are "qualified institutional buyers" in accordance with Rule 144A under the United States Securities Act of 1933, as amended (the "Securities Act") and outside the United States to persons other than U.S. Persons in reliance on Regulation S under the Securities Act.  The offer and sale of the Notes will not be registered under the Securities Act or any state securities laws and the Notes may not be offered or sold in the United States or to, or for the account or benefit of, U.S. Persons, absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Notes, nor shall there be any offer or sale of the Notes in any jurisdiction which such offer, solicitation or sale would be unlawful.

About Western Energy Services Corp.:

Western is an oilfield service company which provides contract drilling services in Canada through its division Horizon Drilling and in the United States through its wholly owned subsidiary Stoneham Drilling Corporation.  In Canada, Western also provides well servicing through its division Eagle Well Servicing and oilfield rental services through its division AERO Rental Services.

FORWARD-LOOKING STATEMENTS AND INFORATION:

This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws.  All statements other than statements of historical fact contained in this press release may be forward-looking statements and forward-looking information.  In particular, forward-looking information and statements in this press release include, but are not limited to, the timing and completion of the offering of Notes and the use of the net proceeds from the offering.  These forward-looking statements and information are based on certain key expectations and assumptions made by Western, including the assumption that the offering will be completed.  Although Western believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward- looking statements and information as Western cannot give any assurance that they will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties.  Actual results could differ materially from those currently anticipated due to a number of factors and risks.  These include, but are not limited to, the risk that the offering of Notes will not be completed as proposed or at all and general economic, market and business conditions.  Readers are cautioned that the foregoing list of risk and uncertainties is not exhaustive.  Additional information on these and other risks factors that could affect Western's operations, financial results and the completion of the offering are included in the Western's annual information form and the other disclosure documents filed by Western with securities regulatory authorities which may be accessed through the SEDAR website at www.sedar.com.  The forward-looking statements and information contained in this press release are made as of the date hereof and Western does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. 

SOURCE: Western Energy Services Corp.

For further information:

Dale E. Tremblay  
Chief Executive Officer  
403.984.5929
dtremblay@wesc.ca

Alex MacAusland  
President and COO
403.984.5932
amacausland@wesc.ca 

Jeffrey K. Bowers
Senior VP Finance and CFO
403.984.5933
jbowers@wesc.ca 

Western Energy Services Corp.
#1700, 215 - 9th Avenue SW Calgary, AB T2P 1K3
PH: 403.984.5916  Fax: 403.984.5917

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