Brief: Source Energy Services Ltd. announces acquisition of Preferred Sands' Wisconsin Mine, Processing Facility and Canadian Frac Sand Assets

Source Energy Services

17/10/2017 20:42

Oct 17 (Reuters) - Source Energy Services Ltd  SHLE.TO : 
    * Announces acquisition of Preferred Sands' Wisconsin Mine, 
Processing Facility and Canadian Frac Sand Assets as well as $90 
million in equity financings 
    * Consideration for Acquisition includes U.S.$80 million in 
cash, subject to closing and post-closing adjustments 
    * Acquisition is expected to provide significant accretion 
in cash flow per share in 2018 
    * Acquisition is also expected to be immediately accretive, 
based on key operational metrics 
    * Financing deal by $25.1 million public bought deal equity 
financing, $65 million private placement equity financing, draws 
on credit facilities 
    * Prior to closing of acquisition, co expects to increase 
its revolver limit under its credit facilities from $35 million 
to $70 million 
    * Approximately $20 million of revolver limit will be 
utilized to finance acquisition 
    * In connection with deal, co entered agreement with 
underwriters  to issue 3 million shares on bought deal basis at 
$8.35 per share 
 
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