SECURE Provides Update on Merger with Tervita Corporation

Source: www.gulfoilandgas.com 4/12/2021, Location: North America

SECURE Energy Services Inc. announced that S&P Global Ratings ("S&P") has provided an initial issuer credit rating on the Corporation of "B" with a positive outlook following the merger announcement with Tervita Corporation ("Tervita") last month. This represents the Corporation's first public issuer credit rating and the S&P rating is expected to increase transparency and comparability for debt investors and other capital market participants.

On March 8, 2021, SECURE and Tervita entered into an arrangement agreement to combine in an all-share transaction, creating a stronger midstream infrastructure and environmental solutions business (the "Transaction"). Upon completion of the Transaction, pursuant to which SECURE will acquire all of the issued and outstanding common shares of Tervita (the "Tervita Shares") on the basis of 1.2757 common shares of SECURE (the "SECURE Shares") for each outstanding Tervita Share, SECURE and Tervita shareholders will own approximately 52% and 48%, respectively, of the combined company. The combined company will operate as SECURE and remain listed on the Toronto Stock Exchange ("TSX") as TSX: SES.

The Transaction combines highly complementary midstream infrastructure asset bases and environmental service lines, which are expected to materially enhance scale and utilization and provide operating efficiencies for the combined company's customers. Significant estimated annual integration cost savings of $75 million are expected to be realizable within 12 to 18 months after closing, contributing to the pro forma discretionary free cash flow profile.

Maintaining financial discipline will continue to be a key priority for SECURE following the close of the Transaction. The Corporation's strong pro forma financial position with attractive free cash flow generation is expected to provide increased flexibility for debt repayment and help achieve the combined company's target debt to EBITDA ratio of less than 2.5x, which is expected to be achieved within two years of closing.


Australia >>  9/10/2021 - - Santos and Oil Search have entered into a definitive agreement to merge the two companies in an all-scrip transaction
- Oil Search shareholder...

Mexico >>  9/10/2021 - Nexans SA has entered into a Share Purchase Agreement with Xignux SA of Mexico to acquire Centelsa, a premium cable maker in Latin America active in t...

United States >>  9/10/2021 - Westlake Chemical Corporation has completed the acquisition of Dimex LLC, from Grey Mountain Partners, a private equity firm.

“The acquisit...

United States >>  9/10/2021 - Caterpillar Inc. has acquired Enhanced Energy Group, Inc. operating as "CarbonPoint Solutions," a U.S.-based carbon capture technology company. Headqu...

Brazil >>  9/9/2021 - Petrobras, following up on the release disclosed on July 21, 2021, informs that, as scheduled, it concluded the settlement of the Term of Commitment e...
United States >>  9/9/2021 - Chevron U.S.A. Inc., through its Chevron New Energies division, announced it has agreed on a framework to acquire an equity interest in ACES Delta, LL...




Gulf Oil and Gas
Copyright © 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.