CES Energy Solutions Corp. Announces Refinancing of Its 6.875% Senior Unsecured Notes With 5.625% Senior Unsecured Notes
Not for Distribution to United States Newswire Services or for Dissemination in the United States
CES Energy Solutions Corp. (“CES” or the “Company”) (TSX: CEU) (OTC: CESDF) announced today that it has entered into an underwriting agreement with a syndicate of underwriters to sell, pursuant to a private placement (the “Offering”), $300.0 million aggregate principal amount of its 5.625% senior unsecured notes due June 15, 2033 (the “Notes”). The Offering is expected to close on or about June 15, 2026, subject to customary closing conditions.
The net proceeds from the Offering will be used to fund the redemption of CES' $275.0 million 6.875% 2029 Notes (the “2029 Notes”) and partially repay amounts outstanding under the Company’s senior credit facility, extending the Company's debt maturity profile to 2033, reducing its cost of capital, and further strengthening and preserving its overall capital structure on attractive terms to support its existing business and future growth objectives.
CES will issue a conditional notice to redeem its 2029 Notes at a redemption price of 103.438%, plus accrued and unpaid interest to, but not including the redemption date (“Conditional Notice”). The redemption is expected to be completed one business day following closing of the Offering and is conditioned upon completion of the Offering. This press release does not constitute a notice of redemption of the 2029 Notes. Further information related to the terms and conditions of the redemption of the 2029 Notes will be described in the Conditional Notice that will be distributed to holders of the 2029 Notes by Computershare Trust Company as trustee. Beneficial holders with any questions about the redemption should contact their respective brokerage firm or financial institution.
