Source Energy Services Ltd. completes $175M IPO

On April 13, 2017, Source Energy Services Ltd. (“Source”) completed an initial public offering of approximately 16.7 million common shares at $10.50 per common share for aggregate gross proceeds of approximately $175 million. The common shares of Source are listed on the Toronto Stock Exchange under the symbol “SHLE.”

The offering was made through a syndicate of underwriters co-led by Scotia Capital Inc., Morgan Stanley Canada Limited and BMO Nesbitt Burns Inc. and including CIBC World Markets Inc., Goldman Sachs Canada Inc., Raymond James Ltd., RBC Dominion Securities Inc., Canaccord Genuity Corp., AltaCorp Capital Corp., Cowen and Company, LLC, GMP Securities L.P. and Peters & Co. Limited (collectively, the “Underwriters”). 

Source is a fully integrated producer, supplier and distributor of high-quality Northern White frac sand, which is a preferred proppant used to enhance hydrocarbon recovery in the hydraulic fracturing of oil and natural gas wells. Source sells frac sand, primarily to customers operating in the Western Canadian Sedimentary Basin through its strategically located terminal network. 

Source was represented by Stikeman Elliott LLP as to matters of Canadian law, with a team that included Craig Story, Leland Corbett, Carolyn Simpson, Amanda Kousinioris, Patrick McNally, Haifeng Hu and Stephen Wintermute (corporate and securities) and Julie D'Avignon and Kevin Guenther (tax), and by Thompson & Knight LLP as to matters of US law, with a team that included Timothy Samson, Alen Baden and Stephen Grant (corporate and securities) and Roger Aksamit and John Cohn (tax). 

The Underwriters were represented by Blake, Cassels & Graydon LLP as to matters of Canadian law, with a team that included Tim Andison, Sarah Hammond, Robert Seager, Andrew Goldie, Mike Proudfoot and Kendall Grant (corporate and securities) and Chris Van Loan (tax), and by Skadden, Arps, Slate, Meagher & Flom LLP as to matters of US law, with a team that included Christopher Morgan, Annabelle Gardere and Maia Bessemer (corporate and securities).