Savanna Energy Services Corp. Closes $126.8 Million Bought Deal Financing


    TSX - SVY

    CALGARY, June 3 /CNW/ - Savanna Energy Services Corp. ("Savanna" or the
"Company") has closed its previously announced bought deal equity financing
resulting in the issuance of 20,125,000 common shares (including 2,625,000
common shares issued pursuant to the exercise in full of the over-allotment
option granted to the underwriters) at $6.30 per share for total gross
proceeds of $126,787,500. The syndicate of underwriters was led by Peters &
Co. Limited, and included FirstEnergy Capital Corp., TD Securities Inc., RBC
Capital Markets and Cormark Securities Inc. The net proceeds of the offering
will initially be used by Savanna to pay down bank debt and then will be used
for general working capital purposes.

    Savanna is a leading North American contract drilling and oilfield
services company providing a broad range of drilling, well servicing and
related services with a focus on fit for purpose technologies for the North
American market and industry-leading aboriginal relationships.

    The securities offered have not been and will not be registered under the
U.S. Securities Act of 1933, as amended, and may not be offered or sold in the
United States absent registration or applicable exemption from the
registration requirements. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy nor shall there by any sale of the
securities in any jurisdiction in which such offer, solicitation or sale would
be unlawful.

    ADVISORY: This press release contains forwarding looking statements. More
particularly, this press release contains statements concerning the
anticipated use of the net proceeds of the offering. Although Savanna believes
that the expectations reflected in these forward looking statements are
reasonable, undue reliance should not be placed on them because Savanna can
give no assurance that they will prove to be correct. Since forward looking
statements address future events and conditions, by their very nature they
involve inherent risks and uncertainties. The intended use of the net proceeds
of the offering by Savanna might change if the board of directors of the
Company determine that it would be in the best interests of the Company to
deploy the proceeds for some other purpose, such as an acquisition.
    The forward looking statements contained in this press release are made
as of the date hereof and the Company undertakes no obligations to update
publicly or revise any forward looking statements or information, whether as a
result of new information, future events or otherwise, unless so required by
applicable securities laws.

    The Toronto Stock Exchange has neither approved nor disapproved the
    contents of this press release.

For further information:

For further information: Ken Mullen, President & Chief Executive
Officer, Darcy Draudson, Vice President, Finance and Chief Financial Officer,
Telephone: (403) 503-9990, Fax: (403) 267-6749

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Savanna Energy Services Corp.

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