Canada's Xtreme Drilling opts to withdraw $170 million notes offering

By Paul A. Harris

Portland, Ore., July 24 - Xtreme Drilling and Coil Services Corp. of Calgary, Alta., stated in a July 16 press release that it does not anticipate going forward with the previously announced $170 million offering of five-year first-lien notes.

"Xtreme has finalized an additional $10 million loan with HSBC Canada," the release stated. "The loan along with the existing facility will be used for general corporate purposes as well as to complete the remaining two XDR 500 drilling rigs that are in process and scheduled to deploy on three-year term contracts in August and October.

"After exploring the market, management determined that a combination of the existing credit facility and the new loan provides the liquidity needed at terms that are more favorable to the company."

Pareto Securities had been tapped as the bookrunner for the private debt refinancing deal, which had been talked to yield 8¾% to 9¼%.

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