Key Developments For Bronco Drilling Company, Inc.
Bronco Drilling Company, Inc. (BRNC.O) (Nasdaq)
Bronco Drilling Company, Inc. Enters Into Joint Venture With Carso Infraestructura y Construccion, S.A.B. And $75 Million Revolving Credit Facility With Banco Inbursa
Bronco Drilling Company, Inc. announced that it has entered into a joint venture and revolving credit facility. The Company and Carso Infraestructura y Construccion, S.A.B. have entered into a joint venture to provide oil and gas drilling and workover services in Mexico and Latin America through the Company`s formerly wholly owned subsidiary, Bronco Drilling MX, S. de R.L. de C.V. The Company sold to CICSA 60% of its ownership interest in Bronco MX for cash consideration of approximately $30 million. The assets of Bronco MX consist of six drilling rigs, ancillary equipment and profits to two current drilling contracts with PEMEX, all of which were contributed to Bronco MX by the Company in connection with the formation of the joint venture. The Company has also agreed to contribute to the joint venture three additional drilling rigs currently drilling in Mexico at the completion of those contracts. The Company has also entered into a $75 million revolving credit facility with Banco Inbursa S.A., Institucion de Banca Multiple, Grupo Financiero Inbursa, a portion of the proceeds from which were used to retire all of the indebtedness that was outstanding under the Company`s existing credit facility. The remainder of the revolving credit facility will be used for working capital and general corporate purposes.
Bronco Drilling Company, Inc. Issues Q4 2008 Outlook-Conference Call
Bronco Drilling Company, Inc. announced that for fourth quarter of 2008, fully diluted earnings per share (EPS) would have been $0.18 and EBITDA would have been $21.9 million absent few nonrecurring charges in the third quarter the majority of which related to the terminated merger with Allis-Chalmers. According to Reuters Estimates, analysts were expecting the Company to report EPS of $0.20 and EBITDA of $22.04 million for the same period.
Bronco Drilling Company, Inc. Announces Amended Credit Facility
Bronco Drilling Company, Inc. announced that it has amended and restated its credit agreement. Under the new facility, Bronco will refinance all existing indebtedness with the remainder available for working capital and general corporate purposes, which may include acquisitions. The total availability under the new facility is $150 million and borrowings under the facility are guaranteed by all of Bronco's domestic subsidiaries and are secured by generally all of the assets of Bronco and its subsidiaries. Draws under the facility will bear interest at 4.0% over LIBOR or 3.0% over Prime based on the instructions of the company for individual draws. The facility matures in September 2013.
Allis-Chalmers Energy Inc. And Bronco Drilling Company, Inc. Terminates Merger Agreement
Allis-Chalmers Energy Inc. and Bronco Drilling Company, Inc. announced that they have terminated their Agreement and Plan of Merger relating to the proposed acquisition of Bronco Drilling Company, Inc. by Allis-Chalmers Energy Inc. Allis-Chalmers Energy Inc. and Bronco Drilling Company, Inc. agreed to terminate the merger agreement in light of clear indications that Bronco Drilling Company, Inc. stockholders would not adopt the merger agreement.
Allis-Chalmers Energy Inc. And Bronco Drilling Company, Inc. Amends Terms of Merger Agreement
Allis-Chalmers Energy Inc. and Bronco Drilling Company, Inc. announced that they have amended the terms of their previously announced definitive merger agreement providing for the acquisition of Bronco Drilling Company, Inc. by Allis-Chalmers Energy Inc. The amended agreement provides that at the effective time of the merger, stockholders of Bronco Drilling will receive aggregate merger consideration comprised of (a) $200 million in cash and (b) 16,846,500 shares of Allis-Chalmers common stock. The combined consideration has a value of $18.25 per share of Bronco Drilling common stock based on the closing price of Allis-Chalmers' common stock on May 30, 2008. The number of shares of Allis-Chalmers stock payable as merger consideration is fixed and is not subject to adjustment based on trading value or otherwise. The merger agreement has also been amended such that Allis-Chalmers and Bronco Drilling anticipate that receipt of the stock portion of the merger consideration will be tax-free to Bronco Drilling's stockholders. Upon completion of the transaction, it is anticipated that Allis-Chalmers' and Bronco Drilling's stockholders will own approximately 68% and 32%, respectively, of the combined company. The boards of directors of both Allis-Chalmers and Bronco Drilling have approved the amended merger agreement. The transaction remains subject to customary conditions, regulatory approvals and approval by the stockholders of each of Allis-Chalmers and Bronco Drilling.
