ARC Financial closes $65M secondary sale of STEP shares

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By CPE News

pcJ News Briefs – ARC Financial, through ARC Energy Fund 6 and ARC Energy Fund 8, has completed previously announced bought deal secondary offering of 5,307,000 common shares of STEP Energy Services Ltd. (TSX: STEP) at $12.25 per share for total gross proceeds to ARC funds of $65,010,750.

The offering was made through a syndicate of underwriters led by CIBC Capital Markets Inc. as sole bookrunner and Peters & Co. Limited as co-lead underwriter.

Stikeman Elliott LLP and Dentons Canada LLP acted as legal counsels to STEP and the underwriters.

ARC Energy Fund 6 and ARC Energy Fund 8 continue to own 13,808,026 (22.9%) and 27,084,974 (45.0%) STEP shares respectively.

photo credit: STEP Energy Services

News Release

Step Energy Services Ltd. Completes $65 Million Secondary Offering of Common Shares


CALGARY, Alberta, Dec. 01, 2017 — STEP Energy Services Ltd. (the “Company” or “STEP”) (TSX:STEP) announced today the successful closing of its secondary offering (the “Offering”) of common shares of the Company by the limited partnerships comprising ARC Energy Fund 6 and ARC Energy Fund 8 (collectively, the “Selling Shareholders), at a price of $12.25 per share (the “Offering Price”). The Selling Shareholders sold 5,307,000 common shares under the Offering for total gross proceeds to the Selling Shareholders of $65,010,750. STEP did not receive any proceeds from the Offering.

The Offering was made through a syndicate of underwriters on a bought deal basis led by CIBC Capital Markets Inc. as sole bookrunner and Peters & Co. Limited as co-lead underwriter (the “Underwriters”).

The Underwriters were granted an over-allotment option (the “Over-Allotment Option”) to purchase an aggregate of up to an additional 796,050 common shares of the Company from the Selling Shareholders at the Offering Price. The Over-Allotment Option can be exercised at any time, in whole or in part, for a period of 30 days from the date hereof and is subject to customary closing conditions. The Company will not receive any proceeds in connection with any exercise of the Over-Allotment Option.

No securities regulatory authority has either approved or disapproved of the contents of this press release. This press release is not for distribution, directly or indirectly, in or into the United States (including its territories and possessions, any state of the United States and the District of Columbia) or any other jurisdiction outside Canada. This press release does not constitute or form a part of any offer or solicitation to buy or sell any securities in the United States or any other jurisdiction outside of Canada. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or the securities laws of any state of the United States and may not be offered or sold within the United States or to or for the benefit of a United States person absent registration or pursuant to an available exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. There will be no public offering of securities in the United States.


STEP Energy Services is an oilfield service company founded in 2011 that provides fully integrated coiled tubing and fracturing solutions. The Company’s combination of modern, fit‐for‐purpose fracturing and coiled tubing equipment has differentiated STEP in plays where wells are deeper, have longer laterals, and higher pressure.

Initially operating only in Canada as a specialized, deep capacity coiled tubing company, in 2015 STEP expanded into the United States and also began offering fracturing services to our Canadian clients. Currently, STEP is a fully integrated, deep capacity coiled tubing and fracturing solutions provider focused primarily in the Montney and Duvernay in Canada, and a coiled tubing services provider in the United States with operations in the Permian and Eagle Ford in Texas and the Haynesville in Louisiana. The Company’s continuing track record of safety, efficiency and execution drives repeat business from blue‐chip exploration and production clients.

For more information please contact:
Regan Davis
President & Chief Executive Officer