Canada's Savanna Energy Services Corp said it would raise C$110.3 million ($96 million) by way of a bought-deal financing to pay down the company's bank debt and for general corporate purposes.

The contract drilling and oilfield services company said a syndicate of underwriters led by Peters & Co Ltd agreed to buy 17.5 million common shares of the company at a price of C$6.30 a share.

The underwriters have an option to buy an additional 15 percent of the issue to cover over-allotments. If the option is exercised in full, the gross proceeds will be C$126.8 million.

Shares of the Calgary-based company were down 39 Canadian cents or 6.7 percent at C$6.28 Monday morning on the Toronto Stock Exchange. ($1=1.149 Canadian dollar) (Reporting by Ashutosh Joshi in Bangalore; Editing by Mike Miller)

Canada Energy