CALGARY,
AB, April 8, 2022 /CNW/ - Ensign Energy
Services Inc. ("Ensign" or "the Company") is pleased to announce
that it has issued a notice to redeem early, subject to preexisting
conversion rights, all of its outstanding $37,000,000 aggregate principal amount of
unsecured subordinated convertible debentures ("Debentures") on
June 7, 2022, (the "Redemption
Date"). The Debentures, which have a maturity date of May 1, 2023, provide the holders of the
Debentures with the right to convert the Principal Sum to common
shares of the Company up to five Business Days prior to the
Redemption Date at a conversion price of $1.75 per common share.
On the Redemption Date, the Corporation will pay any holders of
Debentures, who have not previously elected to convert such
Debentures into common shares, a redemption price equal to the
principal amount of Debentures and all accrued and unpaid interest
up to but excluding the Redemption Date. The Company has received
consent from the lenders of the Bank Credit Facility to permit the
Company to use cash on hand to pay the redemption price of any
redeemed Debentures that have not been converted prior to the
Redemption Date.
Ensign is a global leader in oilfield services, headquartered
out of Calgary, Alberta, operating
in Canada, the United States and internationally. We are
one of the world's top land-based drilling and well servicing
contractors serving crude oil, natural gas, and geothermal
operators. Our premium services include contract drilling,
directional drilling, underbalanced and managed pressure drilling,
rental equipment, well servicing and production services. Please
visit our website at ensignenergy.com.
Ensign's Common Shares are publicly traded though the facilities
of the Toronto Stock Exchange under the trading symbol ESI.
FORWARD-LOOKING INFORMATION
This news release contains forward-looking statements. When used
in this news release, the words "may", "would", "could", "will",
"intend", "plan", "anticipate", "believe", "seek", "propose",
"estimate", "expect", and similar expressions, as they relate to
Ensign, are intended to identify forward-looking statements. In
particular, this news release contains forward-looking statements
with respect to, among other things, the early redemption of
Debentures and potential conversion elections. These statements
involve known and unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from
those anticipated in such forward-looking statements. Such
statements reflect Ensign's current views with respect to future
events based on certain material factors and assumptions and are
subject to certain risks and uncertainties, including without
limitation, changes in market competition, governmental or
regulatory developments, general economic conditions and other
factors set out in Ensign's public disclosure documents. Many
factors could cause Ensign's actual results, performance or
achievements to vary from those described in this news release,
including without limitation those listed above. These factors
should not be construed as exhaustive. Should one or more of these
risks or uncertainties materialize, or should assumptions
underlying forward-looking statements prove incorrect, actual
results may vary materially from those described in this news
release as intended, planned, anticipated, believed, sought,
proposed, estimated or expected, and such forward-looking
statements included in, or incorporated by reference in this news
release, should not be unduly relied upon. Such statements speak
only as of the date of this news release. Ensign does not intend,
and does not assume any obligation, to update these forward-looking
statements. The forward-looking statements contained in this news
release are expressly qualified by this cautionary statement.
SOURCE Ensign Energy Services Inc.