Calfrac Announces Rights Offering and Redemption of Second Lien Notes

Core Viewpoint - Calfrac Well Services Ltd. is initiating a rights offering to raise C$35,000,000, fully backed by existing directors and shareholders, to address debt maturities and enhance financial stability [1][5]. Rights Offering Details - The rights offering is expected to be completed around December 23, 2025, allowing the company to access a C$120,000,000 term loan and potentially an additional C$15,000,000 from existing facilities [2]. - The proceeds will be used to redeem approximately US$120,000,100 of outstanding 10.875% second lien secured notes before their 2026 maturity [2]. - Eligible shareholders will receive one transferable right for each common share held as of November 21, 2025, with each right allowing the subscription for 0.1514872 of a common share at a price of $2.69, representing a 15% discount to the average trading price [3][4]. Standby Purchase Agreement - A standby purchase agreement has been established with major shareholders, ensuring that they will exercise their rights and purchase any unsubscribed shares, thereby guaranteeing the company will achieve the C$35,000,000 target [5][7]. - The major shareholders collectively hold over 60% of the outstanding common shares, indicating strong support for the company's strategy [7]. Financial Strategy and Outlook - The CFO highlighted that the refinancing plan aims to reduce debt and interest expenses, aligning with the company's financial priorities [8]. - The company anticipates a significant reduction in long-term debt and borrowing costs, supported by strong operating results and decreased capital spending in 2026 [8]. Regulatory and Procedural Information - The rights will be listed on the TSX under the symbol "CFW.RT" starting November 21, 2025, and will expire on December 19, 2025 [4][10]. - Detailed information regarding the rights offering will be provided in a circular and notice available on SEDAR+ [9].