Daily News: June 20, 2017

HSBC Leads $225MM Total Energy Services Facility

Total Energy Services closed $225 million of revolving credit facilities with a syndicate of lenders led by HSBC Bank Canada.

The facility is expected to replace the company’s existing $65 million credit facility and the $150 million credit facility with Savanna Energy Services.

The facility will have a term to maturity of three years, and Total may elect to increase amounts available to it under the credit facility at any time during the term by up to $75 million (to a maximum borrowing of $300 million).

In addition to supporting Total’s consolidated business financing requirements going forward, the company intends to utilize the credit facility to fund: the repayment by Savanna of $104.5 million owing to Alberta Investment Management, plus accrued and unpaid interest; and the purchase by Savanna of any 7% senior unsecured notes tendered to Savanna’s change-of-control offer made to the holders of outstanding 7% notes on April 24, 2017.

Total Energy Services is an energy services corporation involved in contract drilling services, rentals and transportation services and the fabrication, sale, rental and servicing of natural gas compression and process equipment.