The Alberta Investment Management Corp. is investing in oilfield services company Western Energy Services Corp. with a $215-million financing deal.
According to the agreement, the $215-million second lien loan will be available to the Calgary-based company in a single draw and will mature with five years. AIMCo will also purchase a private placement of 9.1 million common shares of Western Energy at a price of $1.25 per common share for gross proceeds of about $11 million.
Read: AIMCo enters into financing deal with Calgary-based energy company
“AIMCo, on behalf of our clients, is again demonstrating our commitment to supporting Alberta investment with this important commitment to Western,” said Kevin Uebelein, chief executive officer of AIMCo, in a press release.
“Western embodies the commitment to sound management and good governance that we seek. The organization has demonstrated a keen ability to manage through the cyclicality of the energy sector, and we have great confidence in management’s ability to most effectively utilize this investment to navigate current challenges facing the market, while also positioning the company for future growth.”
Read: AIMCo enters financing partnership with Calgary oil and gas company