CALGARY, ALBERTA--(Marketwire - April 27, 2009) -
(Canadian dollars, except as noted)
This news release contains "forward-looking information and statements" within the meaning of applicable securities laws. For a full disclosure of the forward-looking information and statements and the risks to which they are subject, see the "Cautionary Statement Regarding Forward-Looking Information and Statements" later in this news release.
Precision Drilling Trust (the "Trust") announced today that it is proceeding with a rights offering to unitholders of the Trust (the "Rights Offering") to raise proceeds of up to approximately $103 million. Pursuant to the Rights Offering, each holder of trust units of the Trust (the "Trust Units") and holders of exchangeable units of Precision Drilling Limited Partnership (the "Exchangeable Units") (together, the "Unitholders"), which are exchangeable into Trust Units on a one for one basis, will receive one transferable right (a "Right") for every Trust Unit or Exchangeable Unit held. Every seven Rights will entitle a holder to purchase one Trust Unit at a price of $3.00. Pursuant to an additional subscription privilege, Unitholders will have the opportunity to acquire additional Trust Units beyond their entitlement at the same subscription price per Trust Unit, to the extent that other Unitholders do not exercise their subscription rights in full. A maximum of 34,441,950 Trust Units will be issued pursuant to the Rights Offering, representing approximately 14.5% of the currently issued and outstanding Trust Units.
A Rights Offering Circular will be mailed to Unitholders of record on May 5, 2009. The Rights will expire at 4:00 PM (Calgary time) on June 3, 2009. The Trust has received conditional approval for listing of the Rights and the Trust Units to be issued upon exercise of the Rights on the Toronto Stock Exchange (the "TSX") and the New York Stock Exchange (the "NYSE"). Completion of the Rights Offering is subject to receiving all necessary regulatory, TSX and NYSE approvals.
The proceeds from the Rights Offering will be used to repay the remaining balance owed on Precision Drilling Corporation's ("PDC") unsecured credit facility, to reduce PDC's secured credit facility and for general corporate purposes.
The Trust intends to file with the U.S.
