Bonnett's Energy Corp. acquired by Mill City Capital, L.P.

CALGARY, Nov. 5, 2013 /CNW/ - Further to its press releases of October 7, 2013 and October 31, 2013, Bonnett's Energy Corp. ("Bonnett's") (TSX - BT) announced today that it has completed the arrangement (the "Arrangement") with BEC Acquisition Ltd., an entity controlled by Mill City Capital, L.P.

Pursuant to the Arrangement, each Bonnett's shareholder, other than certain on-going shareholders, received CDN$7.08 in cash in exchange for each common share held of Bonnett's, and the common shares of Bonnett's held by the on-going shareholders were exchanged for either common shares in the capital of BEC Acquisition Ltd. or a combination of cash consideration and shares of BEC Acquisition Ltd. The total transaction value is approximately CDN$115 million, including the assumption of net debt, liabilities and other obligations and inclusive of the value of approximately 20% of the outstanding shares of Bonnett's held by the on-going shareholders prior to the Arrangement.  It is anticipated that Bonnett's shares will be delisted from the Toronto Stock Exchange within three business days.

Mill City Capital, L.P., a private equity firm based in Minneapolis, MN, led the equity financing for the transaction.   Additional equity financing was provided by Babson Capital Management, Bowside Capital, Bond Capital Partners and members of the management team.  Senior and subordinated debt financing for the transaction was led by Royal Bank of Canada and RBC Capital Partners, respectively, with participation from ATB Corporate Financial Services and Bond Capital Partners.

Bonnett's will continue to be run by its current management team led by Murray Toews, as Chief Executive Officer and Troy Tews, as Chief Operating Officer.

SOURCE: Bonnett's Energy Corp.

Additional information can be obtained by contacting Bonnett's Energy Corp., 65007 43 Hwy., County of Grande Prairie No. 1, Alberta, T8V 5E7.  Information is also available on the Corporation's website at  www.bonnettsenergy.com or by contacting Murray Toews, Chief Executive Officer at [phone] or Mill City Capital LP at [phone].