Superior Energy to up credit facilities to $1 billion to fund merger

By Aleesia Forni

Columbus, Ohio, Oct. 11 - Superior Energy Services Inc. plans to maintain a strong pro forma balance sheet during its merger with Complete Production Services Inc., upsizing its credit facilities to roughly $1 billion for this estimated $2.6 billion transaction.

The increase in the facility will be necessary "in order to handle this [transaction] as well as our other cash requirements," David Dunlap, Superior Energy's president and chief executive officer, said during the company's conference call to announce the acquisition on Monday.

The company anticipates the cash portion of this transaction consideration to total about $570 million of this cash-and-stock offer, according to Dunlap.

"We are expected to be accretive in 2012 in earnings per share and cash flow per share," Dunlap continued.

Superior Energy is a New Orleans-based provider of oilfield services and equipment.

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