Precision Drilling Trust Announces Rights Offering
28 April 2009 - 1:22AM
Marketwired
(Canadian dollars, except as noted)
This news release contains "forward-looking information and
statements" within the meaning of applicable securities laws. For a
full disclosure of the forward-looking information and statements
and the risks to which they are subject, see the "Cautionary
Statement Regarding Forward-Looking Information and Statements"
later in this news release.
Precision Drilling Trust (the "Trust") announced today that it
is proceeding with a rights offering to unitholders of the Trust
(the "Rights Offering") to raise proceeds of up to approximately
$103 million. Pursuant to the Rights Offering, each holder of trust
units of the Trust (the "Trust Units") and holders of exchangeable
units of Precision Drilling Limited Partnership (the "Exchangeable
Units") (together, the "Unitholders"), which are exchangeable into
Trust Units on a one for one basis, will receive one transferable
right (a "Right") for every Trust Unit or Exchangeable Unit held.
Every seven Rights will entitle a holder to purchase one Trust Unit
at a price of $3.00. Pursuant to an additional subscription
privilege, Unitholders will have the opportunity to acquire
additional Trust Units beyond their entitlement at the same
subscription price per Trust Unit, to the extent that other
Unitholders do not exercise their subscription rights in full. A
maximum of 34,441,950 Trust Units will be issued pursuant to the
Rights Offering, representing approximately 14.5% of the currently
issued and outstanding Trust Units.
A Rights Offering Circular will be mailed to Unitholders of
record on May 5, 2009. The Rights will expire at 4:00 PM (Calgary
time) on June 3, 2009. The Trust has received conditional approval
for listing of the Rights and the Trust Units to be issued upon
exercise of the Rights on the Toronto Stock Exchange (the "TSX")
and the New York Stock Exchange (the "NYSE"). Completion of the
Rights Offering is subject to receiving all necessary regulatory,
TSX and NYSE approvals.
The proceeds from the Rights Offering will be used to repay the
remaining balance owed on Precision Drilling Corporation's ("PDC")
unsecured credit facility, to reduce PDC's secured credit facility
and for general corporate purposes.
The Trust intends to file with the U.S. Securities and Exchange
Commission a registration statement on Form F-7 covering these
transactions, and the distribution of Rights and commencement of
the Rights Offering will occur promptly following the effectiveness
of that registration statement.
This press release shall not constitute an offer to sell, nor
the solicitation of an offer to buy, any securities in the United
States, nor shall there be any sale of securities mentioned in this
press release in any state in the United States in which such
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such state. The
Rights Offering, which is expected to be launched immediately
following the effectiveness of a registration statement relating to
the offering, will be made only by means of a prospectus and
prospectus supplement.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION AND
STATEMENTS
Statements about the Trust's expectations and all other
statements in this news release, other than historical facts, are
"forward-looking information" within the meaning of applicable
Canadian securities legislation and "forward-looking statements"
within the meaning of the "safe harbor" provisions of the United
States Private Securities Litigation Reform Act of 1995
(collectively, "forward-looking information and statements"). These
forward-looking information and statements rely on a number of
assumptions concerning future events and are subject to a number of
uncertainties and factors, many of which are outside of the Trust's
control, which could cause actual results to differ materially from
such statements. Forward-looking information and statements in this
news release include, but are not limited to, statements about the
prospect for, and timing of the completion of, the proposed Rights
Offering, the use of the proceeds from the proposed Rights
Offering, the ultimate outcome of the Rights Offering, the
anticipated repayment of PDC's unsecured and secured credit
facilities. Among the factors that could cause results to differ
materially from those indicated by such forward-looking information
and statements are a failure to complete the proposed Rights
Offering, the possibility of a reduced take up under the Rights
Offering and any failure to obtain any required regulatory
approvals. No assurance can be given that any of the events
anticipated by the forward-looking information and statements will
transpire or occur or, if any of them does so, what benefits the
Trust will derive from them.
ABOUT THE TRUST
The Trust is a leading provider of safe, high performance energy
services to the North American oil and gas industry. The Trust
provides customers with access to an extensive fleet of contract
drilling rigs, service rigs, camps, snubbing units, wastewater
treatment units and rental equipment backed by a comprehensive mix
of technical support services and skilled, experienced
personnel.
The Trust is headquartered in Calgary, Alberta, Canada. The
Trust is listed on the Toronto Stock Exchange under the trading
symbol "PD.UN" and on the New York Stock Exchange under the trading
symbol "PDS".
The Toronto Stock Exchange has neither approved nor disapproved
the information contained herein.
Contacts: David Wehlmann, Executive Vice President, Investor
Relations Precision Drilling Corporation, Administrator of
Precision Drilling Trust (403) 716-4575 (403) 716-4755 (FAX)
Precision Drilling Trust 4200, 150 - 6th Avenue S.W. Calgary,
Alberta T2P 3Y7 Website: www.precisiondrilling.com
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