Industry: Utilities & energy
SECURE $200 million senior unsecured note financing
Closing Date: June 30, 2021
On June 30, 2021, SECURE Energy Services Inc. ("SECURE") successfully closed its private offering of $200 million aggregate principal amount of 7.25 per cent senior unsecured notes due Dec. 30, 2026 (the "Offering"). The Offering was underwritten by National Bank Financial Markets and BMO Capital Markets as joint bookrunners, and a syndicate of underwriters, including ATB Capital Markets as co-lead underwriter, and CIBC Capital Markets, TD Securities, HSBC and Scotiabank as co-managers.
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 July 16, 2021, SECURE used a portion of the net proceeds of the Offering to fund the redemption of approximately US$100 million aggregate principal amount of the outstanding Tervita Notes.
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