DBRS Assigns Rating of B (high) to Savanna Energy Services’ Senior Unsecured Notes, Stable Trend

DBRS has today assigned a rating of B (high) with a Stable trend to the $50 million Senior Unsecured Notes (the Notes) issued by Savanna Energy Services Corp. (Savanna or the Company).

The Notes will be guaranteed, jointly and severally, by Savanna’s current and future U.S., Canadian and Australian subsidiaries (the Guarantors) that have also guaranteed the Secured Facility. The Notes are senior unsecured obligations of Savanna and would rank pari passu with the existing and future unsecured and unsubordinated indebtedness of Savanna and the Guarantors. The Notes will be effectively subordinated to all existing and future obligations, including indebtedness and trade payables, of any of Savanna’s subsidiaries that do not guarantee the Notes.

The net proceeds from the sale of the Notes are expected to be used primarily to pay down the outstanding indebtedness under the terms of the Secured Facility.

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

The applicable methodology is Rating Companies in the Oil and Gas Industry (July 2013), which can be found on our website under Methodologies.