CALGARY,
AB, Dec. 22, 2022 /CNW/ - Calfrac Well
Services Ltd. ("Calfrac" or "the Company") (TSX: CFW) is pleased to
announce the completion of the conversion incentive program
announced November 22, 2022 (the
"Program") in respect of its 10.0% 1.5 Lien Senior Secured
Convertible PIK Notes due 2023 (the "Notes"). Approximately
$44.8 million principal amount of
Notes were converted under the Program. As a result of the Program,
the Company:
- issued approximately 33.6 million common shares upon
conversion of the participating Notes;
- reduced its outstanding indebtedness by approximately
$44.8 million, leaving approximately
$2.7 million principal amount of
Notes outstanding; and
- realized savings of approximately $2.3 million of interest otherwise payable on the
Notes to the maturity date.
Pat Powell, Calfrac's Chief
Executive Officer, commented "We are pleased to execute this
conversion program in collaboration with our investors. Moving
forward, we will continue to focus on opportunities to deleverage
the Company's balance sheet as a primary method to return value to
shareholders."
FORWARD-LOOKING
STATEMENTS
This press release contains forward-looking statements and
forward-looking information within the meaning of applicable
securities laws. The use of any of the words "seek", "anticipate",
"plan", "continue", "estimate", "expect", "may", "will", "project",
"predict", "potential", "targeted", "intend", "could", "might",
"should", "believe", "forecast" or similar words suggesting future
outcomes, are forward-looking statements and
information.
In particular, forward-looking statements and information
in this press release include, but are not limited to, statements
with respect to (1) the Program and the consequences and benefits
thereof, including debt reduction and interest savings to be
realized by the Company, and (2) the Company's strategy and
intention to continue deleveraging its balance sheet.
These forward-looking statements and information are
derived from certain assumptions and analyses made by the Company
based on its experience and perception of historical trends,
current conditions, expected future developments and other factors
that it believes are appropriate in the circumstances, including,
but not limited to, the economic and political environment in which
the Company operates, including the anticipated impacts of
inflation on the Company's operations and demand for its services;
the Company's expectations for its current and prospective
customers' capital budgets and geographical areas of focus; the
effect of environmental, social and governance factors on customer
and investor preferences and capital deployment; the Company's
existing contracts and the status of current negotiations with key
customers and suppliers; the continued effectiveness of cost
reduction measures instituted by the Company; and the likelihood
that the current tax and regulatory regime will remain
substantially unchanged.
Forward-looking statements are subject to a number of
known and unknown risks and uncertainties that could cause actual
results to differ materially from the Company's expectations. Such
risk factors include but are not limited to: volatility of industry
conditions including the level of exploration, development and
production for oil and natural gas in Canada, the U.S. and Argentina and market prices for oil and
natural gas impacting the demand for oilfield services; sourcing,
pricing and availability of raw materials, component parts,
equipment, suppliers, facilities and skilled personnel; industry
equipment levels and the effect of competition on the Company's
ability to retain current clients and obtain new ones; risks
associated with foreign operations, including risks relating to
unsettled political conditions, war, including the ongoing
Russia and Ukraine conflict and any expansion of that
conflict, foreign exchange rates and controls, international trade
and regulatory controls and sanctions, and doing business with
national oil companies; the impacts of the Russia-Ukraine conflict on the global supply and
demand for oil and gas; and those other risk factors set forth
under the heading "Risk Factors" in Calfrac's Annual Information
Form for the year ended December 31,
2021 dated March 18, 2022 and
under the heading "Business Risks" in Calfrac's Management's
Discussion and Analysis for the year ended December 31, 2021 dated March 18, 2022, which are available at
www.sedar.com and are incorporated herein by reference.
The forward-looking statements and information contained
in this press release speak only as of the date hereof and Calfrac
does not undertake any obligation to update publicly or revise any
such forward-looking statements or information, whether due to new
information, future events or otherwise, unless so required by
applicable securities laws. The Company's actual results could also
differ materially from those anticipated in these forward-looking
information and statements due to the risk factors discussed above
and incorporated herein by reference.
ADDITIONAL
INFORMATION
Calfrac's common shares and warrants are publicly traded
on the Toronto Stock Exchange under the trading symbols "CFW" and
"CFW.WT", respectively.
Further information regarding Calfrac Well Services Ltd.,
including the most recently filed Annual Information Form, can be
accessed on the Company's website at www.calfrac.com or under the
Company's public filings found at www.sedar.com.
SOURCE Calfrac Well Services Ltd.