CALGARY,
AB, Nov. 28, 2023 /CNW/ - Ensign Energy
Services Inc. ("Ensign" or "the Company") (TSX: ESI) is pleased to
announce it has issued the redemption notice for the entire
outstanding principal amount, US $417.5
million, of its 9.25% Senior Notes ("Senior Notes") due
April 15, 2024, at a price of 100%
plus accrued interest to date of redemption. The redemption date
for the Senior Notes is December 14,
2023. The Company will be using available cash, liquidity,
and draw on its previously announced three-year, $369.0 million Term Facility. A notice of
redemption will be sent to all currently registered holders of the
Notes by the Trustee, U.S. Bank.
As previously announced, the Company has also amended and
extended its existing $900.0 million
Credit Facility. The Company expects the blended interest rate
between the Term Facility and the Credit Facility for the fiscal
year 2024 to be approximately eight percent.
The Company reaffirms its debt reduction target for 2023,
targeted to be approximately $200.0
million. As of September 30,
2023, Ensign's Total debt, net of cash, has been reduced by
$143.7 million since December 31, 2022. Furthermore, Ensign's target
debt reduction for the period beginning 2023 to the end of 2025 is
approximately $600.0 million. If
industry conditions change, this target could be increased or
decreased.
Cautionary Statements on
Forward-looking Information
Certain statements in this news release constitute
forward-looking statements or information (collectively referred to
herein as "forward-looking statements") within the meaning of
applicable securities legislation. Forward-looking statements
generally can be identified by the words "believe", "anticipate",
"expect", "plan", "estimate", "target", "continue", "could",
"intend", "may", "potential", "predict", "should", "will",
"objective", "project", "forecast", "goal", "guidance", "outlook",
"effort", "seeks", "schedule" or expressions of a similar nature
suggesting future outcome or statements regarding an outlook.
These forward-looking statements are subject to, and may be
affected by, numerous risks and uncertainties, some of which are
beyond Ensign's control. Risks that could cause or contribute to
these differences include the factors described in Ensign's public
reports and filings, which are available under Ensign's profile at
www.sedarplus.com. The forward-looking statements contained herein
are expressly qualified in their entirety by this cautionary
statement. The forward-looking information contained herein is
provided as at the date hereof and Ensign does not undertake
update, correct or revise any forward-looking statements as a
result of any new information, future events or otherwise, except
as may be required by applicable law.
About Ensign
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 and well servicing. Please visit our website at
www.ensignenergy.com.
Ensign's Common Shares are publicly traded though the facilities
of the Toronto Stock Exchange under the trading symbol ESI.
SOURCE Ensign Energy Services Inc.
