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Calfrac Well Services Ltd T.CFW

Alternate Symbol(s):  CFWFF

Calfrac Well Services Ltd. is an independent provider of specialized oilfield services in North America and Argentina, including hydraulic fracturing, coiled tubing, cementing and other well stimulation services. Its North America segment provides fracturing services to oil and natural gas companies operating in the Williston Basin located in North Dakota and the broader Rockies region. Its Argentinean segment provides fracturing, coiled tubing and cementing services to oil and natural gas companies operating in the Neuquen, Las Heras, and Comodoro Rivadavia regions. It provides solutions for fresh and high TDS brine applications, support for high viscosity friction reducer fracture fluid systems, along with all traditional industry applications of gel based, crosslink and energized fracturing needs. Its coiled tubing service line offers capability in coiled tubing completions and interventions. It offers primary and remedial cementing services in a variety of wells.


TSX:CFW - Post by User

Comment by Contrarian333on Jan 18, 2021 9:10am
300 Views
Post# 32318514

RE:RE:RE:RE:RE:RE:RE:RE:pik notes

RE:RE:RE:RE:RE:RE:RE:RE:pik notesWith respect I don't think that is quite right.  The former senior debentureholders converted their debt into equity.  Armoyan as an example was a debt holder.  My guess would be he bought that debt in the market at a huge discount because that is what he does but I don't know that for sure. In addition, new capital $60m was raised (and used to reduce other debts) by issuing PIK convertible securities to a few parties Armoyan being one of them.  To the best of my reading of the circular there was no conversion of debt into PIK convertibles.  The "hardship" clause was used to get a sweeheart financing approved because that was the cost of the new capital.  A great deal for the PIK holders.  However, if you consider those deep in the money convertibles as converted (and the warrants too) and look at EBITDA from the last "normal" year (that being 2019) you will see that the multiple to EBITDA is something less than 2X.  With $100m of cash on the balance sheet (including all subs) they have no immediate crisis in front of them, they are cheap, and I understand their business is fully booked to May at the moment.
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