CES Energy Solutions closes $300 million senior notes offering

CES Energy Solutions Corp. (TSX: CEU) (OTC: CESDF) completed a private placement of $300 million aggregate principal amount of 5.625% senior unsecured notes due June 15, 2033.

The Calgary-based energy services company plans to use net proceeds to redeem its existing $275 million 6.875% senior unsecured notes due May 24, 2029, and partially repay amounts outstanding under its senior credit facility. The transaction extends the company's debt maturity profile to 2033 and reduces its cost of capital.

BMO Capital Markets and National Bank Capital Markets served as joint active bookrunning managers for the private placement. The syndicate included Scotiabank as joint bookrunning manager, with TD Securities, ATB Cormark Capital Markets, RBC Capital Markets and Wells Fargo Securities Canada as co-lead managers. CIBC Capital Markets, Raymond James, Peters & Co. Limited, J.P. Morgan Securities Canada Inc. and TPH & Co. acted as co-managers.

The notes were offered in Canada through private placement under certain prospectus exemptions. In the United States, they were sold only to qualified institutional buyers under Rule 144A of the U.S. Securities Act, while offshore sales relied on Regulation S.

CES Energy Solutions provides chemical solutions to the energy industry, including drilling fluids and production chemicals used throughout oil and gas operations from drilling to pipeline transport.

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