On Sept 18, 2009 Bronco sold 60% of a new Mexican rig venture, Bronco MX, to Carso Infraestructura y Construccion for US$30.0M (plus 60% reimbursement of import VAT), keeping 40% after contributing six rigs; three more rigs are to follow when their leases end. It also replaced the Fortis revolver with a new $75M revolver from Banco Inbursa (matures Sept 17, 2014; Eurodollar rate + 5.80%; max debt-to-EBITDA 3.5x) and issued Inbursa a three-year warrant for up to 5,440,770 shares at $6.50-$7.50. Carso's partner in Bronco MX shares a Mexican-group link with the Slim-family holders in earlier notices (inference from names); the warrant could dilute existing shareholders if exercised, capped at 19.99% of shares outstanding.
WEXFORD CATALYST INVESTORS LLC, WEXFORD SPECTRUM TRADING LIMITED, WEXFORD CAPITAL LP, WEXFORD GP LLC, CHARLES E. DAVIDSON, JOSEPH M. JACOBS reported a Bronco Drilling Company, Inc. shareholding of 279,685 shares (3.00% of votes) in a periodic institutional filing.
WEXFORD CATALYST INVESTORS LLC, WEXFORD SPECTRUM TRADING LIMITED, WEXFORD CAPITAL LP, WEXFORD GP LLC, CHARLES E. DAVIDSON, JOSEPH M. JACOBS disclosed a new substantial Bronco Drilling Company, Inc. shareholding (49.00% of votes).
Wexford Catalyst Investors LLC, Wexford Spectrum Trading Limited, Wexford Capital LP, Wexford GP LLC, Charles E. Davidson, Joseph M. Jacobs reported a Bronco Drilling Company, Inc. shareholding of 2,803,894 shares (10.30% of votes) in a periodic institutional filing.
Wexford Catalyst Investors LLC, Wexford Spectrum Trading Limited, Wexford Capital LP, Wexford GP LLC, Charles E. Davidson, Joseph M. Jacobs reported a Bronco Drilling Company, Inc. shareholding of 3,220,883 shares (11.83% of votes) in a periodic institutional filing.
Carlos Slim Hel&#, Carlos Slim Domit, Marco Antonio Slim Domit, Patrick Slim Domit, Mar&#, Vanessa Paola Slim Domit, Johanna Monique Slim Domit, Inmobiliaria Carso, S.A. de C.V reported a Bronco Drilling Company, Inc. shareholding of 4,200,000 shares (15.67% of votes) in a periodic institutional filing.
Carlos Slim Hel&#, Carlos Slim Domit, Marco Antonio Slim Domit, Patrick Slim Domit, Mar&#, Vanessa Paola Slim Domit, Johanna Monique Slim Domit, Inmobiliaria Carso, S.A. de C.V reported a Bronco Drilling Company, Inc. shareholding of 3,931,000 shares (14.66% of votes) in a periodic institutional filing.
Carlos Slim Hel&#, Carlos Slim Domit, Marco Antonio Slim Domit, Patrick Slim Domit, Mar&#, Vanessa Paola Slim Domit, Johanna Monique Slim Domit, Inmobiliaria Carso, S.A. de C.V reported a Bronco Drilling Company, Inc. shareholding of 2,827,000 shares (10.54% of votes) in a periodic institutional filing.
Carlos Slim Hel&#, Carlos Slim Domit, Marco Antonio Slim Domit, Patrick Slim Domit, Mar&#, Vanessa Paola Slim Domit, Johanna Monique Slim Domit, Inmobiliaria Carso, S.A. de C.V disclosed a new substantial Bronco Drilling Company, Inc. shareholding (7.64% of votes).
On September 29, 2008 Bronco and its domestic subsidiaries signed an Amended and Restated Credit Agreement with Fortis Bank-led lenders for a revolving facility of up to $150 million, maturing September 29, 2013. It carries interest of 4% over LIBOR or 3% over prime, a 0.5% unused fee, a first lien on substantially all assets, and covenants including a minimum fixed charge ratio (1.05 rising to 1.15) and maximum total leverage of 2.00. This replaces the January 2006 Fortis facility (same $150M size, maturing 2009) on a longer term but at a higher stated rate than the earlier LIBOR+2.0-3.0% range.
8 Aug 2008material agreement termination▼ BadMajor
On August 8, 2008 Bronco and Allis-Chalmers mutually terminated their merger agreement (as amended June 1, 2008), because it was determined unlikely that Bronco's stockholders would adopt it by the required vote. Bronco will pay Allis-Chalmers $4.5 million and both sides release all claims. This ends the buyout, so Bronco stays an independent listed company and holders do not receive the merger consideration.
Bronco and Allis-Chalmers amended their January 2008 merger agreement on June 1, 2008. Consideration is now $200.0M cash plus a fixed 16,846,500 Allis-Chalmers shares, worth $18.25 per Bronco share at the May 30 close, and the stock part is expected to be tax-free. Bronco holders would own about 32% of the combined company (up from 27.9%), and the share number no longer adjusts with price. The deal still needs Bronco and Allis-Chalmers shareholder and regulatory approvals.
On January 23, 2008 Bronco agreed to be acquired by Allis-Chalmers Energy in a deal valued at about $437.8 million: $280.0M cash plus about $157.8M of Allis-Chalmers stock, or $16.33 per Bronco share, a 21.8% premium to the January 23 close. It needs approval from both companies' shareholders and regulators; Bronco owes a $10.0M termination fee in specified circumstances, and the receipt would be taxable to Bronco holders. Bronco holders would own about 27.9% of the combined company.
On November 15, 2007 Bronco's subsidiary agreed to take a 25% stake in Challenger Limited (Isle of Man) in exchange for 6 drilling rigs and $5 million cash, with closing expected in Q4 2007 subject to conditions and satisfactory due diligence. Bronco also expects to sell Challenger four other rigs and equipment for $12 million in installments, and to provide Challenger with operational and management support. This is a new international move, separate from the Eagle Well diversification into well services.
Wellington Management Company, LLP reported a Bronco Drilling Company, Inc. shareholding of 1,240,315 shares (4.77% of votes) in a periodic institutional filing.
Wellington Management Company, LLP reported a Bronco Drilling Company, Inc. shareholding of 2,368,315 shares (9.50% of votes) in a periodic institutional filing.
Wellington Management Company, LLP reported a Bronco Drilling Company, Inc. shareholding of 2,805,815 shares (11.25% of votes) in a periodic institutional filing.
