Stampede Drilling wraps amendments, extension of 10% convertibles

By Taylor Fox

New York, Nov. 2 – Stampede Drilling Inc. completed the restructuring of the terms of its 10% convertible unsecured debentures and amended the terms of the debentures, according to a news release.

As previously reported, under the terms of the amending agreements:

• The debenture would be extended by three years until Oct. 31, 2023;

• The conversion price will be lowered to $0.21 per common share from $0.49;

• Stampede will be able to pay accrued interest in common shares based on the average trading price of the common shares over the previous 30 trading days, subject to approval from the Toronto Venture Exchange; and

• The redemption thresholds will be updated, such that Stampede may not redeem the debentures prior to Oct. 31, 2021, may redeem the debentures on and after Oct. 31, 2021 and prior to Oct. 31, 2022, provided the current market price of the common shares is at least 125% of the conversion price and may redeem the debentures on and after Oct. 31, 2022.

Effective Oct. 31, holders of 100% of the principal amount of the debentures have entered into amending agreements with Stampede.

Based in Calgary, Alta., Stampede provides drilling services in western Canada.

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