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Destiny Closes Private Placement Financing with First Reserve Corporation.

CALGARY, ALBERTA--(BUSINESS WIRE)--July 6, 1999--

Destiny Resource Ser(TSE:DSC.) Destiny Resource Services Corp. ("Destiny") announced today that it had closed the Private Placement financing ("the financing") with First Reserve Corporation ("First Reserve") previously announced June 03, 1999.

The financing consists of $10 million in common stock of Destiny at $1.28 per share and $10 million in Senior Subordinated Debt repayable on July 2, 2004 and carrying an annual interest rate of 8 percent paid semi-annually.

After giving effect to the transaction, First Reserve holds approximately 35 percent of Destiny's issued and outstanding common shares.

At the same time, Destiny announced that it had used $10 million of the proceeds of the financing to repay the convertible debenture held by Citibank Canada with the balance of the funds being used to pay down the companies revolving line of credit.

Destiny Resource Services Corp. is a Calgary based oilfield service company providing essential integrated services to the seismic, exploration and production industries in Canada, the United States, Central and South America, the Middle East, Africa and Southeast Asia.

First Reserve Corporation is a private equity firm specializing in the energy industry. Founded in 1980, the firm currently manages a portfolio of energy holdings with a market value in excess of $1.5 billion. The firm is headquartered in Greenwich, Connecticut and also has offices in Houston, Texas and Denver, Colorado. Other First Reserve portfolio companies include TransMontaigne Inc., Weatherford International, Inc., Cal Dive International, Inc., Cardinal Services, Inc. and Pursuit Resources Corp. Raymond James & Associates, Inc. acted as financial advisor and agent to Destiny in this transaction.

The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.
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Publication:Business Wire
Geographic Code:1USA
Date:Jul 6, 1999
Words:283
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