CES Energy closes $75-million amount of 6.87% notes

Executive Summary

• CES Energy Solutions Corp. has closed a private placement offering of an additional $75 million in aggregate principal amount of its 6.875% senior unsecured notes due May 24, 2029.
• This issuance represents a reopening of the notes originally issued on May 24, 2024, bringing the total outstanding principal amount of this series to $275 million.
• The net proceeds will be utilized to repay outstanding indebtedness on the company's senior syndicated credit facility and for general corporate purposes.

Key Details

• Transaction Structure: Private placement offering of senior unsecured notes.
• Aggregate Principal Amount: $75 million (additional issuance).
• Total Outstanding: $275 million aggregate principal amount of initial notes and notes outstanding following the closing.
• Interest Rate: 6.875% per annum.
• Maturity Date: May 24, 2029.
• Issuance Price: 103.125% of face value (plus accrued interest from May 24, 2025, to, but excluding, the date of closing).
• Yield to Worst: 5.559%.
• Terms: Substantially identical terms to the initial notes issued on May 24, 2024, with fungibility following the expiry of the applicable statutory hold period.
• Use of Proceeds: Repayment of outstanding indebtedness on the senior syndicated credit facility and general corporate purposes.
• Lead Managers: BMO Capital Markets and Scotiabank (Joint Active Bookrunning Managers).
• Other Managers: TD Securities (Joint Bookrunning Manager); ATB Capital Markets, RBC Capital Markets, National Bank Capital Markets, and Wells Fargo Securities (Co-Lead Managers); CIBC Capital Markets, Peters & Co. Ltd., and Raymond James (Co-Managers).

Notable Quotes

• "We are pleased to announce the successful closing of our $75-million senior unsecured notes offering, which was completed at an attractive price reflecting the strength of our business. The financing further improves our capital structure and provides ample liquidity to support potential future growth opportunities," said Anthony Aulicino, executive vice-president and chief financial officer.