Savanna Energy Services Corp. ("Savanna") (TSX:SVY) announces it has received a notice (the "Notice") of an event of default pursuant to its second lien credit facility with Alberta Investment Management Corporation ("AIMCo") as a result of the acquisition by Total Energy Services Inc. ("Total") of more than 50% of the outstanding common shares of Savanna and Savanna's failure to pay the obligations owing pursuant to the facility as a result of such change of control. Pursuant to the Notice, AIMCo has demanded the immediate payment of all obligations outstanding under the facility, including the aggregate principal amount outstanding of $105 million, the change of control payment of $6 million and all accrued and unpaid interest thereon. AIMCo is currently prohibited from enforcing the payment of these amounts for at least 180 days pursuant to the intercreditor arrangements between AIMCo and Savanna's first lien lenders.
Savanna is reviewing the impact of the Notice and its refinancing options and will look to engage with Total with respect to its refinancing options, as appropriate.
Savanna is a leading contract drilling and oilfield services company operating in North America and Australia providing a broad range of drilling, well servicing and related services with a focus on fit for purpose technologies and industry-leading Aboriginal relationships.
SOURCE:Savanna Energy Services Corp.
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