Precision Drilling posts early results in tender for 6 5/8%, 6½% notes

By Susanna Moon

Chicago, Nov. 22 – Precision Drilling Corp. said investors had tendered $310,224,487 of its 6 5/8% senior notes due 2020 and $216,337,000 of its 6½% senior notes due 2021 as of 5 p.m. ET on Nov. 21.

Precision accepted for purchase all of the tendered 6 5/8% notes and $70 million of the 6½% notes using a proration factor of 32.36%, with settlement expected to occur on Nov. 22, according to a company press release.

The company said it plans to finance the notes purchase with proceeds of its private placement of senior notes due 2026.

As announced Nov. 8, Precision is tendering for all of the 6 5/8% notes and up to $70 million of the 6½% notes.

The issuer also secured the needed consents from holders of the 6 5/8% notes to amend the note indenture to reduce the minimum notice period for a redemption to three business days from 30 days and to eliminate substantially all of the restrictive covenants and certain events of default.

After the early deadline, the outstanding amount is $61,526,513 for the 6 5/8% notes and $248,625,000 of the 6½% notes.

Precision said it plans to redeem the remaining 2020 notes on Dec. 7.

Holders who tendered by the early tender deadline will receive $1,015.00 per $1,000 principal amount of 6 5/8% notes and $1,025.00 per $1,000 principal amount of 6½% notes.

The prices include an early tender premium of $30.00 per $1,000 principal amount.

Notes tendered after the deadline but before the expiration, 12 a.m. ET on Dec. 7, will be purchased at $985.00 per $1,000 principal amount for the 6 5/8% issue or $995.00 per $1,000 principal amount for the 6½% issue.

Precision Drilling will also pay accrued interest up to but excluding the payment date.

Funding for the tender will come from an offering of new senior notes due 2026 and cash on hand. The tender is conditional on at least $400 million of notes being issued.

RBC Capital Markets, LLC (877 381-2099 or 212 618-7843) is dealer manager. D.F. King & Co., Inc. (800 676-7437) is tender agent and information agent.

Precision Drilling is a Calgary, Alta., provider of services to the oil and gas industry, including contract drilling rigs, directional drilling services, well service and snubbing rigs, camps, rental equipment and wastewater treatment units.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.