DBRS Comments on CES Energy Solutions Corp.’s Proposed Offering of Unsecured Notes

DBRS Limited (DBRS) comments on CES Energy Solutions Corp.’s (CES or the Company) proposed offering, on a private placement basis of $300 million principal amount of Senior Unsecured Notes due 2024 (the 2024 Notes). The net proceeds of the offering, plus additional amounts available under the Company’s credit facility, will be used to redeem the existing 7.375% Notes due 2020 (the 2020 Notes) that in aggregate total $300 million. As a result of the planned refinancing of the existing 2020 Notes with the new 2024 Notes, DBRS provisionally rates the proposed offering of the 2024 Notes at B with a Stable trend and a recovery rating of RR4.

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

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

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.