TriWest’s Source Energy Services prices $300M IPO

Ted Liu

Source Energy Services completed US $45M acquisition of Sand Products Wisconsin LLC

Source Energy Services Ltd., a portfolio company of TriWest Capital Partners, intends to raise $300 million by way of a treasury offering (IPO) of $275 million and a secondary offering of $25 million by selling shareholder.

Source Energy Services has set a preliminary IPO price of between $17 and $20, resulting of between 15,000,000 and 17,647,059 common shares to be issued.

Source Energy Services would be valued at $902 million at the upper end price of $20 per share.

Selling shareholders include TriWest Capital Partners, Sand Ventures, Source Energy Services New Partners Investment, Jim McMahon and McMahon Family Trust.

TriWest Capital Partner IV bought a majority stake in Source in October 2013 for undisclosed amount.

Immediately prior to closing of the offering, TriWest will own approximately 16.63 million shares with a holding value of between $232 million and $273 million, depending on the IPO price range of $17-$20 per share.

photo credit: Source Energy Services