Source Energy Services

Canaccord Genuity Acts as Exclusive Financial Advisor to Source Energy Services in Refinancing its Bank ABL and Term Loan and Amending its $165 million Senior Secured Notes, Securing a New US$55 million Senior Credit Facility

Canaccord Genuity is pleased to announce that on October 17, 2022, its client, Source Energy Services (“Source”), announced it has closed a new US$55 million committed revolving asset backed senior credit facility (the “ABL”) with a syndicate comprised of FGI Worldwide LLC (“FGI”) and CIT Northbridge Credit (“CIT”), refinancing its outstanding credit facility and term loan with Canadian banks. The Company has also entered into a supplemental indenture that governs its $165 million Senior Secured Notes (“the “Supplemental Indenture”).

This new ABL facility provides Source with a lower cost of borrowing, less restrictive covenants and an improved liquidity profile.

Source is a company that focuses on the integrated production and distribution of high quality frac sand, as well as the distribution of other bulk completion materials not produced by Source. Source provides its customers with an end-to-end solution for frac sand supported by its Wisconsin and Peace River mines and processing facilities, its Western Canadian terminal network, its “last mile” logistics capabilities and Sahara, a proprietary wellsite mobile sand storage and handling system. Source’s full-service approach allows customers to rely on its logistics platform to increase reliability of supply and to ensure the timely delivery of frac sand and other bulk completion materials at the wellsite.

Canaccord Genuity acted as financial advisor to Source on its negotiations with FGI and CIT, as well as its amendment negotiations with the Senior Secured Notes regarding the Supplemental Indenture.