Norton Rose Fulbright US LLP and Norton Rose Fulbright Canada LLP (transaction counsel) and Davies Ward Phillips & Vineberg LLP and Cravath, Swaine & Moore LLP (financing counsel) acted as Enerflex’s legal advisors. King & Spalding LLP and McCarthy Tétrault LLP assisted Exterran Corp. Latham & Watkins represented RBC Capital Markets.
Enerflex Ltd. (TSX: EFX) and Exterran Corporation (NYSE:EXTN) announced a US$735-million business combination to create a premier integrated global provider of energy infrastructure.
The company will operate as Enerflex Ltd. and will remain headquartered in Calgary, Alberta, Canada.
The companies will combine in an all-share transaction pursuant to which Enerflex will acquire all of the outstanding common stock of Exterran on the basis of 1.021 Enerflex common shares for each outstanding share of common stock of Exterran, resulting in approximately 124 million Enerflex common shares outstanding upon closing, representing an implied combined enterprise value of approximately US$1.5 billion.
In conjunction with the Transaction, Enerflex has entered into a binding agreement with the Royal Bank of Canada to provide Enerflex with a fully committed financing consisting of a US$600 million 3-year revolving credit facility and a US$925 million 5-year bridge loan facility. The bridge loan will provide financing to backstop an anticipated issuance of new debt securities prior to closing of the Transaction. The committed financing is sufficient to fully repay existing Enerflex and Exterran notes and revolving credit facilities and support putting in place a new capital structure, provide for capital expenditures and other ordinary course capital needs, and provide significant liquidity for the pro forma business.
RBC Capital Markets acted as exclusive financial advisor to Enerflex, while TD Securities and Scotia Capital acted as strategic advisors.
Wells Fargo Securities, LLC acted as exclusive financial advisor to Exterran.
The transaction is expected close in the second or third quarter of 2022.
The Davies team advising on the financing included Scott Hyman (Picture), David Wilson and Stephen Dalby (Finance); and Christopher Anderson (Tax).
The Cravath team was led by partners Joseph D. Zavaglia and Douglas Dolan and included associate Nicole M. Gould.
The King & Spalding deal team included Keith Townsend, Robert Leclerc, Jake Downing, Brett Schroeder, George Hwang, and Philip Rizk, with valuable assistance from Salome Cisnal de Ugarte, Jeff Spigel, Brian Meiners, Alexis Early, Adam Harper, Craig Lee, Evan Palenschat, Rich Marooney, Craig Ledet, Karl Heisler, Julie Peng, Ed Hozlwanger, Emily Manns, Elizabeth Morgan, Hillyer Jennings, Hap Shashy, Andrew Todd, Meredith O’Leary, and Melanie Perez.
The McCarthy Tétrault team was led by Jessica Brown and Patrick M. Shea and included Jason Gudofsky and Casey Halladay (Competition), Brett Anderson and Erica Hennessey (Tax), Deron Waldock (Pensions & Benefits), Ben Aberant (Employment), Kim Howard (Environmental), Jade Buchanan (Privacy) and Vincent Yip (Intellectual Property).
Latham & Watkins represented RBC Capital Markets in the financing commitment related to the bridge loan facility with an Austin-based team led by partners Michael Chambers, David Miller, and Sam Rettew.
Involved fees earner: Douglas Dolan – Cravath Swaine & Moore; Nicole Gould – Cravath Swaine & Moore; Joseph Zavaglia – Cravath Swaine & Moore; Christopher Anderson – Davies Ward Philips & Vineberg; Stephen Dalby – Davies Ward Philips & Vineberg; Scott Hyman – Davies Ward Philips & Vineberg; David Wilson – Davies Ward Philips & Vineberg; Salomé Cisnal de Ugarte – King & Spalding; Jake Downing – King & Spalding; Alexis Early – King & Spalding; Adam Harper – King & Spalding; Karl Heisler – King & Spalding; Gyung Ho Hwang – King & Spalding; Hillyer Jennings – King & Spalding; Robert Leclerc – King & Spalding; Craig Lee – King & Spalding; Emily Manns – King & Spalding; Richard Marooney – King & Spalding; Brian Meiners – King & Spalding; Melanie Perez – King & Spalding; Elizabeth Morgan – King & Spalding; Evan Palenschat – King & Spalding; Julie Peng – King & Spalding; Brett Schroeder – King & Spalding; Meredith Sheldon O’Leary – King & Spalding; Jeffrey Spigel – King & Spalding; Andrew Todd – King & Spalding; Keith Townsend – King & Spalding; Michael Chambers – Latham & Watkins; David Miller – Latham & Watkins; Samuel Rettew – Latham & Watkins; Benjamin Aberant – McCarthy Tétrault; Brett Anderson – McCarthy Tétrault; Jessica Brown – McCarthy Tétrault; Jade Buchanan – McCarthy Tétrault; Jason Gudofsky – McCarthy Tétrault; Casey Halladay – McCarthy Tétrault; Erica Hennessey – McCarthy Tétrault; Kimberly Howard – McCarthy Tétrault; Patrick Shea – McCarthy Tétrault; Deron Waldock – McCarthy Tétrault; Vincent Yip – McCarthy Tétrault;