Past year: ▲ 41%(84.14 – 136.90 CAD)
Each one in plain English, with the numbers worked through for a shareholder.
29 July 2011debt financing● NeutralMajor
Precision closed the US$400 million 6.50% senior unsecured notes due 2021 private placement. Net proceeds are intended for the capital expenditure program, including the 2011 new build program, and general corporate purposes; no existing debt repayment is mentioned. This completes the offering announced July 26.
26 July 2011debt financing● NeutralMajor
Precision priced its private offering of senior unsecured notes due 2021 at US$400 million with a 6.5% rate, upsized from the US$300 million announced earlier the same day. Proceeds are to fund its capital expenditure program, including the 2011 new build program, and for general corporate purposes. Closing is not yet reported.
26 July 2011debt financing● NeutralMajor
Precision announced plans for a private offering of US$300 million of senior unsecured notes due 2021, with proceeds to fund its capital expenditure program and for general corporate purposes. Unlike the earlier 2010 and March 2011 offerings, it is not described as repaying existing debt, so total debt would rise if completed (inference). Pricing and closing are not yet reported.
29 Mar 2011business combination▲ Good
Precision closed the acquisition of Drake Directional Drilling, LLC and Drake MWD Services, LLC, which provide directional drilling in Texas, Louisiana, Oklahoma and Colorado, typically running 10-14 jobs at a time, with facilities near Houston. No price is given. The CEO ties it to a stated 2011 priority of building directional drilling in North America, a new service line beyond the rigs, camps and rentals Precision already offered.
15 Mar 2011debt financing● Neutral
Precision closed the C$200 million 6.50% senior unsecured notes due 2019 private placement to Canadian investors. Net proceeds and available cash will be used to repay its senior secured revolving credit facilities, completing the offering announced March 9.
11 Mar 2011debt financing● Neutral
Precision priced the C$200 million of senior unsecured notes due 2019 at a 6.50% rate, sold to Canadian investors. Proceeds and available cash are to repay its senior secured revolving credit facilities.
9 Mar 2011debt financing● Neutral
Precision announced plans for a private placement in Canada of C$200 million of senior unsecured notes due 2019, subject to market conditions. Proceeds and available cash are to repay amounts owed under its senior secured revolving credit facilities.
23 Feb 2011debt financing● NeutralMajor
Precision repaid in full the 10% senior unsecured note held by Alberta Investment Management Corporation (AIMCo), about $204 million in total including $175 million principal, accrued interest and a make-whole amount. This appears to be the $175 million senior unsecured notes placed in April 2009 (inference). Payment came from cash on hand and credit facility borrowings, and the interest and make-whole premium will be a first-quarter 2011 charge to earnings.
17 Nov 2010debt financing▲ GoodMajor
Precision closed the US$650 million 6.625% senior unsecured notes due 2020 and used the proceeds to repay in full term loan A (about US$263 million) and term loan B (about US$318 million). It terminated its existing credit facilities and entered a new US$550 million senior secured revolving credit facility expiring in 2013, which may be increased by US$100 million subject to conditions. Remaining proceeds go to general corporate purposes. This completes the refinancing announced November 5.
10 Nov 2010debt financing● NeutralMajor
Precision priced US$650 million of 6.625% senior unsecured notes due 2020, upsized from the US$550 million first announced. Proceeds are to repay the term loan A (about US$263 million) and term loan B (about US$318 million) in full and for general corporate purposes, with closing expected November 17, 2010. The planned new secured revolver is now stated as US$550 million (the earlier release said US$650 million), expiring in 2013.
5 Nov 2010debt financing● NeutralMajor
Precision announced plans for a private offering of US$550 million of senior unsecured notes due 2020. With cash on hand, the money is to repay in full its term loan A (about US$263 million outstanding) and term loan B (about US$318 million outstanding), and Precision expects to enter a new US$650 million senior secured revolving credit facility expiring in 2013. This is a refinancing of the debt taken on around the Grey Wolf deal; it is a proposal, not yet completed.
4 June 2009capital raising announcement▲ GoodMajor
The rights offering closed with the maximum 34,441,950 trust units issued for gross proceeds of about $103.3 million. Proceeds will repay the remaining balance on the unsecured credit facility, reduce the secured facility and fund general purposes; allocation of additional units is still being tallied.
27 May 2009capital raising announcement● Neutral
Precision reminded unitholders that rights must be delivered with payment to Computershare before 4:30 PM Calgary time on June 3, 2009. This is a reminder only and adds no new terms.
30 Apr 2009capital raising announcement● Neutral
The US registration statement for the rights offering is now effective, clearing the way to launch it. The terms are unchanged (seven rights buy one unit at $3.00); the rights trade on the TSX and NYSE until May 28 (NYSE) and June 3 (TSX), and expire at 4:30 PM Calgary time on June 3, 2009.
28 Apr 2009capital raising announcement● NeutralMajor
Precision announced a rights offering to unitholders to raise up to about $103 million: one right per unit, with seven rights buying one new unit at $3.00, and up to 34,441,950 units (about 14.5% of units outstanding) to be issued. Proceeds will repay what remains on the unsecured credit facility, reduce the secured facility and cover general purposes. Unitholders who don't take part will be diluted (inference); rights expire June 3, 2009.
23 Apr 2009capital raising announcement● NeutralMajor
Precision closed a private placement of $175 million of senior unsecured notes plus 35,000,000 trust units at $3.00 each, for about $280 million gross, including 15,000,000 warrants to buy more units at $3.22 for five years. The proceeds will reduce the $296 million (US$235 million) unsecured bridge facility, replacing the senior notes offering postponed in February. The new units and warrants add further potential dilution for existing unitholders (inference).
19 Feb 2009debt financing▼ BadMajor
Precision postponed a planned US$250 million senior notes offering due 2015, citing unfavourable market conditions, and will rely on its committed financing instead. The unsecured bridge facility, currently at a fixed 17% interest, converts to long-term financing on or before December 23, 2009 if not refinanced; if all Grey Wolf convertible notes are tendered, it expects to draw another US$98 million for a total of US$236 million on the bridge. Management says it is cutting expenses and capital spending to pay down debt, and says about 200 rigs are operating, with an average of about 85 rigs under term contracts in 2009; these are management's expectations.
18 Feb 2009capital raising announcement● NeutralMajor
Precision closed the offering of 46,000,000 trust units at US$3.75 each for gross proceeds of US$172.5 million, completing the raise priced on February 9. Proceeds go to repurchase the Grey Wolf convertible notes under the change-of-control obligation, with any excess for general corporate purposes. The filing does not say whether the underwriters' extra-unit option was exercised.
10 Feb 2009capital raising announcement● NeutralMajor
Precision priced a public offering of 46,000,000 trust units at US$3.75 each, for gross proceeds of US$172.5 million (up to US$198.375 million if underwriters use their extra 6.9 million unit option), expected to close February 18, 2009. The money is meant to pay for repurchasing the Grey Wolf convertible notes that Precision assumed in the December 2008 merger and for which it made a change-of-control offer on January 22, 2009, with any excess going to capital spending and general purposes. New units dilute existing unitholders, who also had Grey Wolf holders added in December.
31 Dec 2008business combination● Neutral
Final Grey Wolf election results replace the preliminary figures: former Grey Wolf holders who chose all cash get US$5.39 plus 0.1700 of a Precision unit per share, while those who chose units or didn't elect get 0.4225 units per share. This settles the consideration for the completed merger; no other new information is given.
24 Dec 2008business combination● NeutralMajor
Precision completed its acquisition of Grey Wolf on December 23, 2008 after Grey Wolf shareholders approved it, resolving the pending merger. Cash elections far exceeded the cash available, so those electing cash were expected to get about US$5.15 plus about 0.1808 units per share, while others get 0.4225 units. Precision also put in place a new US$1.6 billion credit facility (US$1.2 billion secured, US$400 million unsecured bridge, of which US$138 million was drawn at closing) that funded the cash portion and refinanced its existing bank debt. Grey Wolf stock is being delisted, while Precision units continue on the TSX and NYSE.
16 Dec 2008business combination● Neutral
Precision and Grey Wolf set a December 19, 2008 deadline for Grey Wolf shareholders to choose between cash and Precision units. Each Grey Wolf share converts into either US$9.02 in cash or 0.4225 of a Precision unit, subject to proration, and closing is expected promptly after the December 23 shareholder meeting. This is a procedural step in the pending Grey Wolf merger.
3 Dec 2008business combination● Neutral
Precision and Grey Wolf made a clarifying amendment to the merger agreement and moved the Grey Wolf shareholder meeting to December 23, 2008. The amendment says cash that would have gone to Grey Wolf convertible note holders who don't convert will instead be kept by Precision towards the purchase offer it must make for those notes after the merger. The overall terms of US$5.00 cash and 0.1883 units per Grey Wolf share are restated, about 54% of Grey Wolf shares had voted for the deal, and all regulatory approvals are reported received, with closing expected December 23.
25 Aug 2008business combination● NeutralMajor
Precision Drilling Trust signed a definitive agreement to acquire US driller Grey Wolf, Inc. Grey Wolf shareholders get US$5.00 cash plus 0.1883 of a Precision unit per share (about US$1.12 billion cash and 42.0 million new units in total), and will own about 25% of the combined company. Precision says financing is committed by four banks and the deal needs Grey Wolf shareholder and regulatory approval but not a vote by Precision unitholders. Existing unitholders are diluted to roughly 75% of the combined entity (inference from the 25% figure).
22 July 2008business combination▲ Good
Precision Drilling agreed on July 18, 2008 to buy six service rigs and related equipment from Rick's Well Servicing Ltd., a private Manitoba company, with closing expected July 31, 2008. The rigs will keep working the Bakken and Sinclair plays in south-eastern Saskatchewan and south-western Manitoba, and the company's president will join Precision as Area Manager. No price was given in the filing.
