Canadian Energy Services & Technology Corp. Announces Proposed Offering of $300 Million Senior Unsecured Notes and Tender Offer for Existing 7.375% Notes

CALGARY, ALBERTA--(Marketwired - March 10, 2017) -

NOT FOR DISSEMINATION INTO THE UNITED STATES OF AMERICA OR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR TO U.S. HOLDERS.

Canadian Energy Services & Technology Corp. ("CES" or the "Corporation") (TSX:CEU)(OTCQX:CESDF) announced today that it intends to conduct a private placement offering (the "Offering") of $300.0 million aggregate principal amount of Senior Unsecured Notes due 2025 (the "Notes"). Subject to completion of the Offering, CES will use the net proceeds from the Offering, plus additional amounts available under its credit facility, to purchase for cash any and all of its outstanding $300.0 million, 7.375% Senior Unsecured Notes due April, 2020 with CUSIP number 13566WAA6 (the "7.375% Notes") from the holders thereof (the "Holders").

CES has engaged Scotia Capital Inc. and RBC Dominion Securities Inc. to lead a syndicate of underwriters to conduct the Offering of the Notes. The Notes will be guaranteed on a senior unsecured basis by current and future subsidiaries of CES that also guarantee the Corporation's credit facility. Specific terms of the Notes, including the interest rate will be determined at a time prior to the issuance of the Notes. The Notes will be offered to qualified buyers in Canada and the United States pursuant to exemptions from applicable prospectus and registration requirements under Canadian provincial securities laws and United States securities laws. Upon completion of the Offering CES will have extended the maturity profile of its senior note indebtedness to 2025.

CES also announced today that it has commenced an offer to purchase (the "Tender Offer") for cash any and all of its outstanding $300.0 million 7.375% Notes from Holders eligible to participate in the Tender Offer. The terms and conditions of the Tender Offer are set forth in the offer to purchase dated March 10, 2017 (the "Offer to Purchase") and in the related letter of transmittal ("Letter of Transmittal"), along with any amendments and supplements thereto, which Holders are urged to read carefully before making any decision with respect to the Tender Offer. The closing of the Tender Offer will be subject to a number of conditions, including the successful completion by CES of the Offering.