ARC Financial to sell up to $74.8M worth STEP Energy Services shares

ARC Financial Corp. through ARC Energy Fund 6 and ARC Energy Fund 8 has entered into a secondary bought deal with a syndicate of underwriters led by CIBC Capital Markets as sole bookrunner and Peters & Co. as co-lead underwriter for the sale of 5,307,000 common shares of STEP Energy Services Ltd. (TSX: STEP) at $12.25 per share for gross proceeds of $65,010,750.

ARC Financial has granted the underwriters an over-allotment option for additional 796,050 common shares at the offering price for additional gross proceeds of $9,751,612.50.

The offering is expected to close on or about December 1, 2017, subject to customary closing conditions.

Upon completion of the Offering and assuming no exercise of the over-allotment option, ARC Energy Fund 6 and ARC Energy Fund 8 will, directly or indirectly, own or control in aggregate approximately 67.9% of the issued and outstanding common shares.

ARC Energy Fund 6 and ARC Energy Fund 8 have been investors in STEP since 2011 and 2015, respectively, and together have provided three separate financing commitment rounds, including two financing commitment rounds during the 2014-2016 downturn in the oil and gas industry.

ARC Energy Fund 6 and ARC Energy Fund 8 have previously granted an over-allotment option 1.5 million common shares of STEP Energy Services at $10.00 per share, as part of STEP’s initial public offering (IPO) which closed on May 2, 2017.

photo credit: STEP Energy Services

Ted Liu

Ted Liu, M.Sc. (Mining, Queen's), MBA (Finance, Toronto), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.