Industry: Utilities & energy
SECURE $140 million senior unsecured note financing
Closing Date: Oct. 4, 2021
On Oct. 4, 2021, SECURE Energy Services Inc. ("SECURE") successfully closed its private offering of $140 million aggregate principal amount of 7.25 per cent senior unsecured notes due Dec. 30, 2026 (the "Offering") at an issue price of $100.75, representing a yield of approximately 7 per cent by reopening its previous offering, which closed on June 30, 2021. The Offering was underwritten by National Bank Financial Markets.
On July 2, 2021, SECURE completed its $2.3-billion acquisition of Tervita Corporation ("Tervita") to create a stronger midstream infrastructure and environmental solutions business. The all-stock transaction was accomplished through a court-sanctioned plan of arrangement under the Business Corporations Act (Alberta) and was approved by both SECURE shareholders and Tervita securityholders.
As a result of the closing of the acquisition, SECURE became the obligor under Tervita’s then outstanding US$500 million aggregate principal amount of 11 per cent senior second lien secured notes due 2025 (the "Tervita Notes") and other direct obligations of Tervita.
On Oct. 7 and 8, 2021, SECURE used the net proceeds of the Offering to fund partial redemptions (collectively, the "Redemptions"), of US$100 million aggregate principal amount of the outstanding Tervita Notes. Upon completion of the Redemptions, US$300 million aggregate principal amount of the Tervita Notes remains outstanding.
SECURE was represented by an in-house legal team led by
Michael Callihoo, general counsel and corporate secretary.
Dentons LLP acted as counsel to the underwriters in connection with the Offering and the Reopening with a team led by
and which included