Secure Energy Services Inc T.SES

Alternate Symbol(s): SECYF

Energy Oil & Gas Equipment & Services

SECURE Energy Services Inc. is a Canada-based environmental and energy infrastructure company. The Company operates through three segments: Environmental Waste Management (EWM) Infrastructure, Energy Infrastructure and Oilfield Services. Its EWM Infrastructure segment includes a network of waste processing facilities, produced water pipelines, industrial landfills, waste transfer facilities, and metal recycling facilities. Through this infrastructure network, the Company carries out business operations, including the processing, recovery, recycling and disposal of waste streams generated by its energy and industrial customers. Its Energy Infrastructure segment includes a network of crude oil gathering pipelines, terminals and storage facilities. Through this infrastructure network, the Company is engaged in the transportation, optimization, terminalling and storage of crude oil. Its Oilfield Services segment includes drilling fluid management, and project management services.

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Secure Energy Services Inc

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Post by retiredcfon Mar 20, 2024 10:10am

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Post# 35942633

RBC

March 20, 2024

Secure Energy
Announces $300MM senior unsecured note financing

TSX: SES | CAD 11.45 | Sector Perform | Price Target CAD 12.00

Sentiment: Neutral

Our view: SES announced the offering of $300MM senior notes due 2029, and intends to use the proceeds and cash on hand to replace the existing $340MM Notes expiring in 2026. The company highlighted previously its plans to repay the 2026 Notes due to its restrictive covenants toward shareholder returns before potentially proceeding with incremental shareholder returns. In our view, the note offering is part of Secure’s capital structure reset after the $1.075Bn sale of assets to Waste Connections.

• New senior notes offering. SES's new 2030 Senior notes offering of $300MM has a rate of 6.75%, and the company intends to use the proceeds, along with cash on hand, to repay the current $340MM 2026 7.25% senior notes at a redemption price of 103.625% ( plus unpaid interest to, but not including, the redemption date of March 22, 2024).