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Press Release Source: Allis-Chalmers Energy Inc.
Allis-Chalmers Energy Expands and Refinances Bank Credit Facility and Closes Acquisitions
Tuesday July 12, 6:00 am ET
HOUSTON, July 12 /PRNewswire-FirstCall/ -- Allis-Chalmers Energy Inc. (Amex: ALY - News) today announced that it has entered into a new $55 million bank credit facility. The proceeds of the facility were used to acquire a 45% equity interest in AirComp LLC from M-I LLC, to purchase the compressed air drilling equipment of WT Enterprise, Inc., which operates under the name of Lone Star Air Service, to replace the company's existing debt facilities and for general working capital purposes. As a result of the purchase of M-I's interest, the Company now owns 100% of the equity interest in AirComp.
The new facility consists of a $13 million revolving credit facility, an $18 million term loan facility and a $24 million acquisition facility, all of which mature in two years.
AirComp provides compressed air and associated hammer and bit services to the drilling, geothermal, completion and workover markets from its operating locations in San Angelo and Fort Stockton, Texas, Farmington, New Mexico, and Grand Junction, Colorado. AirComp has a fleet of over 90 compressors and boosters and is the world's second largest provider of compressed air drilling services. The acquisition of Lone Star will expand these capabilities by increasing the current inventory with an additional 22 compressors, 9 boosters and 8 mist pumps.
"The new financing facility represents another important step in strengthening our balance sheet and our ability to execute our future growth strategies," stated Micki Hidayatallah, the Company's Chairman and Chief Executive Officer. "We are very excited about the acquisition of M-I's minority interest in AirComp and the Lone Star assets, both of which increase our capabilities in the underbalanced drilling sector."
About Allis-Chalmers Energy
Allis-Chalmers Energy Inc. provides a variety of products and services to the oil and natural gas industry. Through its subsidiaries, Allis-Chalmers is engaged in providing specialized equipment and operations to install casing and production tubing required to drill and complete oil and gas wells, directional and horizontal drilling services, the rental of "hevi-wate" spiral drill pipe and related oilfield services, services to enhance production through the installation of small diameter coiled tubing and chemicals into producing oil and gas wells and air drilling services to natural gas exploration and development operators.
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