Pioneer Energy forces conversion of 5% convertible PIK notes due 2025

By Wendy Van Sickle

Columbus, Ohio, Oct. 8 – Pioneer Energy Services LLC announced the accelerated mandatory conversion on Friday of all outstanding principal amount of its 5% convertible senior PIK notes due 2025, according to a press release.

The consummation of the issuer’s acquisition by Patterson-UTI of Pioneer Energy on Oct. 1 constituted a share exchange event under the convertibles’ indenture, dated May 29, 2020.

After the effective time of the event, the right to convert each $1,000 principal amount of the convertibles was changed into a right to convert that principal amount into the amount of shares of Patterson-UTI that a holder of 75 shares of Pioneer Energy common stock would have owned or been entitled to receive upon such share exchange event.

In the share exchange event, each share of Pioneer Energy common stock was converted into the right to receive 1.8692 shares of Patterson-UTI common stock.

Pioneer Energy chose to settle the conversion with shares of Patterson-UTI commons stock and with cash in lieu of fractional shares.

Pioneer Energy is a San Antonio-based drilling services company.

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