Trinidad Drilling to draw on bank facilities to purchase CanElson

By Wendy Van Sickle

Columbus, Ohio, June 11 – Trinidad Drilling Ltd. will borrow from existing bank credit facilities to fund part of its acquisition of CanElson Drilling Inc., Trinidad announced in a news release.

Trinidad will pay up to C$50 million in cash and the remainder in stock at the rate of 1.0631 Trinidad shares and C$4.90 in cash for each CanElson share.

Trinidad said it will also draw from its cash balances for the transaction.

The acquisition will combine Trinidad and CanElson’s contract drilling fleets under a court-approved plan to “create a stronger, more diverse North American drilling company with growth prospects internationally and greater scale and resources,” according to the news release.

Trinidad Drilling is a Calgary, Alta.-based provider of oil and gas drilling equipment. Also based in Calgary, Alta., CanElson operates land-based contract drilling rigs in Canada, the United States and Mexico for oil and natural gas exploration and development companies.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.