Calfrac Well Services seeks to swap shares for debt in recapitalization plan

Must Read

New cases of COVID-19 reported for both City and County of Grande Prairie

GRANDE PRAIRIE, A.B. - Alberta Health Services is reporting, as of Wednesday, two additional cases of COVID-19 for both...

Bear sighted within Fort St John near Toboggan Hill park

FORT ST. JOHN, B.C. - The City of Fort St. John is advising residents of bear sightings within the...

85 new COVID-19 confirmed across BC, four more in Northern Health Region

VICTORIA, B.C. – 85 new cases of COVID-19 were confirmed across the province, bringing the total to 4,196, as...

CALGARY — Calfrac Well Services Ltd. is seeking to restructure in a plan that will see its debtholders swap unsecured notes for shares in the company.

The company says it has obtained a preliminary interim order under the Canada Business Corporations Act as part of its plan.

Calfrac noted that all trade debt and obligations of the company to employees, customers, suppliers and service providers will be unaffected.

- Advertisement -

Community Interviews with Moose FM

Under the plan, holders of the Calfrac’s unsecured notes will receive shares in the company in exchange for the debt.

The existing holders of Calfrac’s common shares will hold an eight per cent stake in the company once the transaction is complete.

As a result of the recapitalization plan and offering, the company’s total debt will be reduced by approximately $570 million and annual cash interest expenses will be cut by approximately $52 million.

This report by The Canadian Press was first published July 14, 2020.

Companies in this story: (TSX:CFW)

The Canadian Press

More Articles Like This