Precision Drilling Corporation Announces Successful Amendment to Credit Agreement
30 Juni 2010 - 11:30AM
Marketwired
Precision Drilling Corporation ("Precision") (TSX: PD) (NYSE: PDS)
announced today that it has successfully concluded negotiations to
amend certain terms of its credit agreement dated December 23,
2008, as amended (the "Credit Agreement"), among Precision, a
syndicate of lenders and Royal Bank of Canada, as administrative
agent. The amendment, which is expected to become effective later
today, will lower the LIBOR floor for the existing Term B loans to
1.75 percent from 3.25 percent and lower the LIBOR interest rate
margin on the existing Term B loans to 5.0 percent from an average
interest rate margin of 6.45 percent.
Non-consenting holders of Term B loans, holding approximately
US$74 million of the Term B loans outstanding being 19 percent of
the Term B loans, will be repaid by Precision with cash on hand.
With this repayment, the outstanding Term B loan balance will be
reduced to approximately US$322 million. After giving effect to the
repayments, the total outstanding debt of Precision will be
approximately $800 million.
"We are extremely pleased with the result of the re-pricing
amendment. The combination of lower interest rates and debt
reduction is expected to lower our annual interest costs by about
$15 million and lower Precision's current effective interest rate
by 1.4 percent to 7.0 percent. This represents significant savings
and highlights the strength of Precision's financial position."
stated Kevin Neveu, President and Chief Executive Officer.
Cautionary Statement Regarding Forward-Looking Information and
Statements
Certain statements contained in this news release, including
statements that contain words such as "will", "expect", "may" and
similar expressions and statements relating to matters that are not
historical facts constitute "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").
In particular, this news release contains forward-looking
information and statements relating to the expectations of
Precision regarding certain proposed amendments to the Credit
Agreement and the effect of such amendments on the Term B loans and
Precision's overall financial position. These forward-looking
information and statements are based on certain assumptions and
analysis made by Precision in light of its perception of current
conditions and expected future developments as well as other
factors it believes are appropriate in the circumstances. However,
whether actual results or achievements will conform to Precision's
expectations and predictions is subject to a number of known and
unknown risks and uncertainties which could cause actual results to
differ materially from Precision's expectations. Consequently, all
of the forward-looking information and statements made in this news
release are qualified by these cautionary statements and there can
be no assurance that the actual results or developments anticipated
by Precision will be realized. Readers are therefore cautioned not
to place undue reliance on such forward-looking information and
statements.
About Precision
Precision is a leading provider of safe, high performance energy
services to the North American oil and gas industry. Precision
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.
Precision is headquartered in Calgary, Alberta, Canada.
Precision is listed on the Toronto Stock Exchange under the trading
symbol "PD" and on the New York Stock Exchange under the trading
symbol "PDS".
Contacts: Precision Drilling Corporation David Wehlmann
Executive Vice President, Investor Relations 403.716.4575
403.716.4755 (FAX) Precision Drilling Corporation 4200, 150 - 6th
Avenue S.W. Calgary, Alberta, Canada T2P 3Y7
www.precisiondrilling.com
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