January 4, 2016 - 1:13 PM EST
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Estrella Announces Debt Restructuring

TORONTO, ON / ACCESSWIRE / January 4, 2016 / Estrella International Energy Services Ltd. (TSXV: EEN) (the "Company" or "Estrella"), announces that on December 31, 2015, it completed a restructuring ("Restructuring") of its existing convertible subordinated unsecured debentures bearing a coupon interest rate of 12% per annum set to mature on December 31, 2015 (the "Debentures"). Canaccord Genuity Corp. acted as Estrella's financial advisor in connection with the Restructuring.

The material terms of the Restructuring are as follows:

- the maturity date of the Debentures was extended until December 31, 2017;

- each holder received a discounted partial repayment of its pro-rata share of CDN$2,500,000 worth of outstanding principal amount, at a discount rate of 40% (together with all accrued and unpaid interest on such amount up to December 31, 2015); meaning that each CDN$0.60 paid to a holder represented a repayment of CDN$1.00 worth of principal (the "Discounted Payment");

- following the Discounted Payment CDN$8,025,175 of principal balance remains outstanding on the Debentures ("Remaining Principal Balance");

- the Company will pay a restructuring fee to the holders equal to 1% of the Remaining Principal Balance (the "Restructuring Fee"). The Restructuring Fee will be payable in two equal installments with the first installment becoming due on July 24, 2016 and the second installment due January 24 2017; and

- the Debentures were amended to remove all convertible features associated with the debt.

All other terms of the Debentures remain unchanged and the next interest accrual date will be January 24, 2016.

About Estrella

Estrella is an oil and natural gas, geothermal and mining service company with operations throughout Latin and South America. It provides conventional drilling services; directional drilling services; tools and equipment sales and rentals; work-over and finishing services; and consulting and engineering services. The Corporation is headquartered in Buenos Aires, Argentina and has operating locations in several countries in Latin and South America.

For further information:

Estrella International Energy Services Ltd.
Ricardo Sarmiento, Chief Executive Officer
Javier Vedoya, Chief Financial Officer
Telephone: +54 (11) 5217-5250
Facsimile: +54 (11) 5217-5280
Email: [email protected]

Forward Looking Statements

This press release may contain forward-looking statements which reflect management's expectations regarding future growth, results of operations, performance and business prospects of Estrella. These forward-looking statements may relate to, among other things, forecasts or expectations regarding business outlook for Estrella, commodity prices for oil and natural gas, oil and natural gas demand and production growth, debt service requirements for Estrella, improvements in operating procedures and technology, capital expenditures by Estrella and the oil and gas industry, the business strategies of Estella's customers, future global economic conditions, and future results of operations, expectations regarding the Company's ability to raise capital, realization of the anticipated benefits of acquisitions and dispositions, revenue growth, future acquisitions, generation of cash flow, and may also include other statements that are predictive in nature, or that depend upon or refer to future events or conditions, and can generally be identified by words such as "may," "will," "expects," "anticipates," "intends," "plans," "believes," "estimates," "guidance" or similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. These statements are not historical facts or guarantees of future performance, but instead represent management's current expectations, estimates and projections regarding future events.

The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances, such as future availability of capital on favourable terms, may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Estrella. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The forward-looking statements contained in this press release are made as of the date of this press release, and Estrella does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities law.

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. THESE SECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Estrella International Energy Services Ltd.


Source: ACCESSWIRE (January 4, 2016 - 1:13 PM EST)

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