Savanna Energy Services entered into agreements with Alberta Investment Management Corporation (AIMCo) for a $200 million second lien senior secured term loan facility.

The term loan will mature on December 31, 2021 and will bear interest at the rate of 7.15% per annum, paid semi-annually. Amortization payments equal to 1% of the original principal amount will be payable annually, in equal quarterly installments, with the balance due on the final maturity date. The proceeds from the term loan will be made available in two draws and amounts borrowed under the term loan that are repaid or prepaid will not be available for re-borrowing.

Savanna and AIMCo also agreed on a private placement of 13 million common shares of Savanna at a price of $1.45 per common share for gross proceeds of $18.85 million. Peters & Co. acted as financial advisor to Savanna in connection with the AIMCo financings.

AIMCo CEO Kevin Uebelein said the deal will provide Savanna with “flexibility to weather this current market downturn,” as the funds will be used in part to reduce the company’s indebtedness.

Savanna is a contract drilling and oilfield services company operating in North America and Australia providing a broad range of drilling, well servicing and related services.

AIMCo is a Canadian institutional investment manager with more than C$90 billion of assets under management.