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BRIEF-Press release - Trican Well Service reaches agreement for sale of United States Pressure Pumping Business and Amended Covenant Package with its lenders

Published 2016-01-26, 01:48 p/m
© Reuters.  BRIEF-Press release - Trican Well Service reaches agreement for sale of United States Pressure Pumping Business and Amended Covenant Package with its lenders
TCW
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Jan 26 (Reuters) - Trican Well Service Ltd TCW.TO :
* Press release - Trican Well Service reaches agreement for sale of its United
States Pressure Pumping Business and Amended Covenant Package with its
lenders
* Deal for $200 million
* Says currently estimating its 10% investment in Keane to have a value between
CDN $67 million and CDN $120 million
* Entered definitive agreement with Keane Group for the sale of Trican's United
States Pressure Pumping Business
* Says as part of the transaction, Trican will have two seats on Keane's board
of directors
* Says break fee equal to USD $20 million is payable by Keane to Trican in the
event of a financing failure
* Says total consideration is estimated to be between CDN $352 million and CDN
$405 million
* In addition to cash,co to receive, 10% of shares of Keane Group Holdings,
LLC,
* Break fee equal to $55 million fee is payable by Keane to Trican if deal is
not consummated in certain other limited circumstances
* Says intends to apply the net cash proceeds from this transaction to reduce
its outstanding debt
* After giving effect to cash proceeds from sale, expect total debt balance to
be reduced to about cdn $235 million
* To receive economic interests in Keane representing additional 20%
participation above thresholds upon Keane liquidity event

* Source text for Eikon ID:nCCN9MbjSP

* Further company coverage TCW.TO

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