CALGARY, Nov. 5, 2013 /CNW/ - Further to its press releases of October
7, 2013 and October 31, 2013, Bonnett's Energy Corp. ("Bonnett's") (TSX - BT) announced today that it has completed the arrangement (the
"Arrangement") with BEC Acquisition Ltd., an entity controlled by Mill City Capital,
Pursuant to the Arrangement, each Bonnett's shareholder, other than
certain on-going shareholders, received CDN$7.08 in cash in exchange
for each common share held of Bonnett's, and the common shares of
Bonnett's held by the on-going shareholders were exchanged for either
common shares in the capital of BEC Acquisition Ltd. or a combination
of cash consideration and shares of BEC Acquisition Ltd. The total
transaction value is approximately CDN$115 million, including the
assumption of net debt, liabilities and other obligations and inclusive
of the value of approximately 20% of the outstanding shares of
Bonnett's held by the on-going shareholders prior to the Arrangement.
It is anticipated that Bonnett's shares will be delisted from the
Toronto Stock Exchange within three business days.
Mill City Capital, L.P., a private equity firm based in Minneapolis, MN,
led the equity financing for the transaction. Additional equity
financing was provided by Babson Capital Management, Bowside Capital,
Bond Capital Partners and members of the management team. Senior and
subordinated debt financing for the transaction was led by Royal Bank
of Canada and RBC Capital Partners, respectively, with participation
from ATB Corporate Financial Services and Bond Capital Partners.
Bonnett's will continue to be run by its current management team led by
Murray Toews, as Chief Executive Officer and Troy Tews, as Chief
SOURCE: Bonnett's Energy Corp.
For further information:
Additional information can be obtained by contacting Bonnett's Energy Corp., 65007 43 Hwy., County of Grande Prairie No. 1, Alberta, T8V 5E7. Information is also available on the Corporation's website at www.bonnettsenergy.com or by contacting Murray Toews, Chief Executive Officer at (780) 513-3400 or Mill City Capital LP at (612) 238 9500.