Parker Drilling Reduces Debt
Parker Drilling Company (NYSE: PKD) has completed the redemption of $65.0 million of the Company's 10 1/8% Senior Notes due 2009 at a redemption price of 105.0625% of the principal amount. The Company funded the redemption by using cash on hand and proceeds from its previously announced sale of $50.0 million of its 9 5/8% Senior Notes due 2013, which had an offering price of 111% and resulted in gross proceeds of $55.5 million.
As a result of this redemption, the Company has achieved approximately 75% of its $200 million debt reduction goal. As announced on May 9, 2005, the Company entered into definitive agreements to sell its remaining seven land rigs in South America for $34.0 million. The net proceeds from this sale will be used to redeem additional 10 1/8% Senior Notes and will result in the Company achieving approximately 90% of its debt reduction goal.
Currently, the Company's overall utilization rate is 82%, the highest
utilization for the year. The Company's Gulf of Mexico utilization is 84%, as
16 of 19 barge rigs are under contract. Utilization includes deep drilling
barge rig 72, which has commenced a multi-well program subsequent to
undergoing modifications after being transferred from Nigeria.
Internationally, utilization has increased to 81%, in part due to rig 236
mobilizing from Russia to work in eastern Turkmenistan. The rig was
originally projected to join two Parker rigs operating in western
Turkmenistan. Rig 236 is expected to commence drilling in this new location
during the third quarter.