Precision Drilling Corporation Announces Closing of Senior Notes Offering
17 November 2010 - 8:54PM
Marketwired
Precision Drilling Corporation ("Precision" or the "Corporation")
today announced the closing of its offering of US$650 million
aggregate principal amount of 6.625% senior unsecured notes due
2020 (the "notes") in a private placement.
The net proceeds from the notes offering were used to repay in
full outstanding indebtedness under the Corporation's existing term
loan A and term loan B credit facilities. Precision intends to use
the remaining proceeds for general corporate purposes. The
outstanding balance under the term A credit facility was
approximately US$263 million and the outstanding balance under the
term B credit facility was approximately US$318 million. In
conjunction with the closing of the notes offering, Precision
terminated its existing credit facilities and entered into a new
US$550 million senior secured revolving credit facility expiring in
2013. Subject to certain conditions, the new senior secured
revolving credit facility may be increased by an additional US$100
million.
The notes were offered to qualified institutional buyers under
Rule 144A and outside the United States pursuant to Regulation S.
The notes have not been registered under the U.S. Securities Act of
1933, as amended (the "Securities Act"), and unless so registered,
may not be offered or sold in the United States except pursuant to
an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act and applicable
state securities laws. This news release shall not constitute an
offer to sell or the solicitation of an offer to buy any
securities, including the notes, nor shall there be any offer or
sale of the notes in any state, or jurisdiction in which such
offer, solicitation, or sale would be unlawful.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION AND
STATEMENTS
Certain statements contained in this news release, including
statements that contain words such as "could", "should", "can",
"anticipate", "estimate", "propose", "plan", "expect", "believe",
"will", "intends", "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, forward-looking information and statements
include, but are not limited to, the use of the net proceeds from
the notes offering. These forward-looking information and
statements are based on certain assumptions and analysis made by
the Corporation in light of its experience and 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, performance or achievements will
conform to the Corporation'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 the
Corporation's expectations. These risks and uncertainties include,
without limitation, those identified under "Risk Factors" in our
annual information form on Form 40-F for the year ended December
31, 2009.
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)
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