23 Sept 2009capital raising announcement● NeutralMajor
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.