DBRS Assigns Rating of B with Stable Trend to CES Energy Solutions Corp.’s 6.375% Senior Unsecured Notes Due 2024

DBRS Limited (DBRS) assigned a rating of B with a Stable trend and a recovery rating of RR4 to CES Energy Solutions Corp.’s (CES or the Company) $300 million 6.375% Senior Unsecured Notes, maturing in 2024 (the 2024 Notes). The net proceeds, 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.

DBRS expects the planned refinancing to improve the Company’s debt maturity profile and also reduce CES’s interest expense since the interest rate on the 2024 Notes is lower than the interest rate on the 2020 Notes.

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.

The rated entity or its related entities did participate in the rating process. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities.

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