DBRS Comments on Canadian Energy Services & Technology Corp’s Withdrawal of its Previously Proposed Offering of Senior Unsecured Notes

DBRS Limited (DBRS) today notes that on March 17, 2017, due to market conditions, Canadian Energy Services & Technology Corp. (CES or the Company) withdrew its previously proposed private placement of approximately $300 million principal amount of Senior Unsecured Notes due March 2025 (the Offering). The proceeds of the Offering were to be solely used to refinance the Company’s existing Senior Unsecured Notes (the Senior Notes) that in aggregate total $300 million. Since the Senior Notes do not mature until April 2020, the Company has adequate flexibility with respect to the timing of the refinancing. Consequently, DBRS notes that the withdrawal of the Offering has no impact on the Company’s credit ratings.

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

The principal methodologies are Rating Companies in the Oil and Gas Industry (September 2016) and DBRS Criteria: Recovery Ratings for Non-Investment Grade Corporate Issuers (February 2017), which can be found on www.dbrs.com under Methodologies.

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