SERVICE SECTOR / Bonus Resource Services Corp. Announces Relationship
with a Strategic Equity Partner
CALGARY, Oct. 23 /CNW/ - Bonus Resource Services Corp. is pleased to
announce that Bonus and SCF Partners of Houston, through its investment fund
SCF IV, L.P., have agreed to terms under which SCF will acquire from treasury
9,000,000 common shares of Bonus at a price of $2.375/share, representing a 36
percent premium over Bonus' October 22, 1998 closing price of $1.75/share. In
conjunction with this transaction, SCF will also receive 2,000,000 Bonus
warrants exercisable at $2.375/share. Each warrant is convertible into one
common share of Bonus. Upon closing, and assuming exercise of the warrants,
SCF would hold 19.3% of the issued and outstanding common shares of Bonus and
is entitled to nominate two representatives to Bonus' Board of Directors.
Closing is expected November 13, 1998 pending the receipt by Bonus of required
regulatory approvals.
Tom Alford, President and Chief Executive Officer of Bonus commented that
''SCF's commitment represents an exciting opportunity for Bonus to join forces
with an organization which is a respected investor in energy service
businesses throughout North America.'' SCF currently holds investments in
various oilfield services companies including Computalog Ltd., Flint Energy
Services, Ltd., PTI Group, Trace Explorations Ltd. and CE Franklin Ltd. in
Canada and Tuboscope Inc. and Continental Emsco among others in the United
States. In addition to its direct equity holdings, SCF is a 50 percent partner
in EnSerCo, Inc. which provided a one year US$25 million bridge loan to Bonus
in conjunction with the acquisition of Alberta Gold Well Servicing Corp. Ltd.
in June of this year. Bonus and EnSerCo are currently in discussions to
restructure this bridge loan to provide Bonus with additional longer-term
flexibility.
Mr. Alford further commented that ''the infusion of new equity into Bonus
provides the capital necessary to position Bonus to take advantage of
opportunities which may arise during the current industry downturn. This
financial flexibility, when combined with the industry experience of SCF,
provides a powerful combination to allow Bonus to continue its consolidation
of the Canadian service rig sector while also exploring opportunities
internationally and in related oilfield service businesses.''
Bonus Resource Services Corp. is Canada's largest service rig company
with 207 service rigs in western Canada and 7 service rigs in Australia. Bonus
trades on The Toronto Stock Exchange under the symbol BOU. |
