Followers | 125 |
Posts | 17118 |
Boards Moderated | 0 |
Alias Born | 04/19/2006 |
Friday, February 27, 2009 11:47:58 AM
CALGARY, ALBERTA -- (Marketwire) -- 02/19/09 -- 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 ("Precision" or the "Trust") announced today that its subsidiary, Precision Drilling Corporation, has postponed its offering of US$250 million principal amount of senior notes due 2015 due to currently unfavourable market conditions.
"The Trust closed the offering of 46,000,000 trust units yesterday that provided gross proceeds of US$172 million," stated Mr. Kevin Neveu, President & Chief Executive Officer of Precision Drilling Corporation. "Precision will continue to use the committed financing that it has in place. The unsecured financing is committed through a bridge facility and under its terms, the drawn portion will convert to long-term financing on or before December 23, 2009, if not refinanced. The rate of interest Precision is paying on the unsecured bridge facility is currently fixed at 17% per annum."
Precision will use the equity proceeds, and if necessary draw on the unsecured bridge facility, to purchase any of the Grey Wolf convertible notes tendered to a change of control offer which expires later in March. If all convertible notes tender to the offer, Precision expects to draw an additional US$98 million for a total of US$236 million on the unsecured bridge facility.
Precision also has a US$1.2 billion secured facility which includes a revolving credit facility of US$400 million. At year end 2008, the Trust had cash of approximately US$50 million, with only US$88 million drawn down under the revolving credit facility, providing Precision with ample liquidity. The overall blended floating cash interest rate before amortization of upfront costs on the secured facility is currently 8% per annum.
Mr. Neveu continued, "Precision's management team is experienced in operating through the cycles in the land drilling industry. As such, we are taking all necessary steps to reduce expenses and capital expenditures, in order to increase cash flow that will be applied to reduce our debt balance going forward. We believe that our cash flow generation, coupled with our equity offering, will enable us to significantly reduce the overall debt balance by the end of 2009. We also believe that the equity offering provides additional assurance, positioning Precision to comply with its debt covenants going forward."
The Trust presently has approximately 200 rigs operating in the United States and Canada, with over 100 of those working under term contracts. In 2009, Precision's term contracts provide for an average of approximately 85 contracted rigs that are anticipated to generate substantial profit margin per rig day, consistent with peak levels achieved during 2008. This base of contracted rigs, coupled with the well-to-well contracted rigs and cash generation from other business units, is expected to provide the cash flow necessary to significantly reduce debt during 2009.
Mr. Neveu concluded, "Precision is well positioned with its diverse operating platform, strong working capital and liquidity position plus committed financing to lead the eventual rebound in land drilling rig activity."
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.UN" and on the New York Stock Exchange under the trading symbol "PDS".
Recent PDS News
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 09/13/2024 10:00:43 AM
- Precision Drilling Announces Renewal of Normal Course Issuer Bid • GlobeNewswire Inc. • 09/13/2024 10:00:28 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 08/26/2024 08:32:43 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 08/01/2024 06:56:34 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 07/30/2024 08:30:07 PM
- Precision Drilling Announces 2024 Second Quarter Unaudited Financial Results • GlobeNewswire Inc. • 07/30/2024 08:30:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 07/08/2024 12:00:13 PM
- Precision Drilling Extends Senior Credit Facility and Provides Progress Update on 2024 Debt Repayment and Share Repurchase Targets • GlobeNewswire Inc. • 07/08/2024 12:00:00 PM
- Precision Drilling Corporation 2024 Second Quarter Results Conference Call and Webcast • GlobeNewswire Inc. • 07/03/2024 08:00:05 PM
- Precision Drilling Corporation Announces Voting Results from the 2024 Annual and Special Meeting of Shareholders • GlobeNewswire Inc. • 05/16/2024 09:28:52 PM
- Precision Drilling Corporation Holding Virtual-Only 2024 Annual and Special Meeting of Shareholders on May 16 • GlobeNewswire Inc. • 05/02/2024 08:00:42 PM
- Precision Drilling Announces 2024 First Quarter Unaudited Financial Results • GlobeNewswire Inc. • 04/25/2024 10:29:46 AM
- Precision Drilling Corporation Announces Filing of Management Information Circular, Virtual-Only Annual and Special Meeting of Shareholders, and 2023 ESG Performance Data • GlobeNewswire Inc. • 04/03/2024 08:38:55 PM
- Precision Drilling Corporation 2024 First Quarter Results Conference Call and Webcast • GlobeNewswire Inc. • 04/02/2024 10:00:19 AM
- Precision Drilling Corporation Announces Filing of Annual Disclosure Documents • GlobeNewswire Inc. • 03/04/2024 11:00:14 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 03/04/2024 10:26:53 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 02/26/2024 01:00:23 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 02/06/2024 12:04:30 PM
- Precision Drilling Reports 2023 Fourth Quarter and Year-End Unaudited Financial Results • GlobeNewswire Inc. • 02/06/2024 11:00:03 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 01/05/2024 11:06:25 AM
- Precision Drilling Meets 2023 Debt Repayment and Share Repurchase Targets and Provides Capital Allocation, Financial and Operational Updates • GlobeNewswire Inc. • 01/05/2024 11:00:10 AM
- Precision Drilling Corporation 2023 Fourth Quarter and Year-End Results Conference Call and Webcast • GlobeNewswire Inc. • 01/04/2024 11:00:50 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 01/04/2024 11:00:11 AM
- Form S-8 - Securities to be offered to employees in employee benefit plans • Edgar (US Regulatory) • 12/20/2023 09:02:26 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 12/13/2023 03:43:11 PM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM