Pioneer Drilling: Share offer proceeds to pay down revolver, fund rigs

By Lisa Kerner

Charlotte, N.C., July 19 - Pioneer Drilling Co. expects to close Wednesday on its offering of 6.9 million shares that netted the company $94 million, said president and chief executive officer Stacy Locke at the 2011 Global Hunter Securities Conference in San Francisco on Tuesday.

The offer saw interest from investors for more than 20 million shares, and Pioneer exercised its greenshoe, said Locke.

Proceeds will be used to construct new-build AC drilling rigs, 76% of which are under contract. Now Pioneer has the balance sheet capability to build out these new contracts as they come due, added Locke.

The offer also allows Pioneer to put its revolving credit facility to zero and "put some cash on the books," Locke said.

Pioneer also recently improved the terms and conditions of its senior secured revolving credit facility, extending the maturity to 2016 from 2012 and increasing the amount to $250 million from $225 million, Locke said.

The company will release its second-quarter results on Aug. 4.

Pioneer Drilling is a San Antonio-based provider of contract land drilling services to oil and gas operators.

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