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Calgary, Alberta--(Newsfile Corp. - January 15, 2020) - Trican Well Service Ltd. (TSX: TCW) ("Trican" or the "Company") is pleased to announce that it has closed the previously announced sale of the assets and business of Fraction Energy Services Ltd. ("Fraction"), a wholly owned subsidiary of Trican (the "Transaction") to Green Energy Services Inc. (collectively, the "Purchaser" or "Green") for consideration of $17.6 million, of which $4 million has been paid by way of a secured vendor take-back loan. The loan is repayable within three years, has terms and covenants consistent with second lien debt, and bears interest at customary second lien rates.
In the last 12 months, independent of this Transaction, Trican has monetized more than $30 million of assets, approximating their net book value, that were either non-core, or not expected to contribute cash flow to the future business of Trican. As with the prior asset sales, Trican intends to use the net cash proceeds from the Transaction to initially reduce its outstanding debt and will evaluate all opportunities for alternative reinvestment, including continued allocation to share repurchases under the previously announced NCIB.
Headquartered in Calgary, Alberta, Trican provides a comprehensive array of specialized products, equipment and services that are used during the exploration and development of oil and gas reserves.
Requests for further information should be directed to:
President and Chief Executive Officer
Chief Financial Officer
Phone: (403) 266-0202
Fax: (403) 237-7716
2900, 645 - 7th Avenue S.W.
Calgary, Alberta T2P 4G8
Please visit our website at www.tricanwellservice.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/51520