DBRS Finalizes Ratings of Canadian Energy Services & Technology Corp. at B (high), Stable Trends

DBRS has today finalized its provisional rating of B (high) of Canadian Energy Services & Technology Corp.’s (CES or the Company) $225 million Senior Unsecured Notes due April 17, 2020 (the Notes), with a recovery rating of RR4 and a Stable trend. DBRS has also finalized the Company’s provisional Issuer Rating of B (high), with a Stable trend. DBRS previously assigned a provisional Issuer Rating of B (high) to CES and a provisional rating of B (high) to the Notes, both with Stable trends, on April 5, 2013 (see the related press release of that date).

The Notes will be direct senior unsecured obligations of CES and will rank pari passu with all of CES’s existing and future senior indebtedness and senior in right of payment to any existing and future subordinated indebtedness of CES. The Notes will be effectively subordinated to all secured indebtedness, including CES’s indebtedness pursuant to its senior credit facilities.

DBRS understands that the proceeds of the Notes will be used to permanently repay the Company’s $160 bridge facility and $10 million vendor take back notes incurred in connection with the acquisition of the production and specialty oilfield chemical business of JACAM Chemical Company, Inc., to refinance certain amount outstanding under its senior credit facilities, and for general corporate purposes.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

The applicable methodology is Rating Oil and Gas Companies (April 2011), which can be found on our website under Methodologies.