Trinidad Energy Services Closes Axxis Acquisition
Trinidad Energy Services Income Trust has closed its previously announced acquisition of the assets of Drilling Productivity Realized, L.L.C., P.C. Axxis, L.L.C., DPR International, L.L.C. and DPR Rentals, L.L.C. The assets acquired include four land based drilling rigs and one barge-drilling rig, together with related inventory, crewboats and spare parts. Trinidad will assume the remaining construction commitments of a second barge drilling rig currently under construction, and will reimburse Axxis for construction costs undertaken to the date of closing. Concurrently with the closing of the Axxis Acquisition, Trinidad has closed its previously announced convertible debenture financing. $325,000,000 aggregate principal amount of 7.75% convertible unsecured subordinated debentures were sold by a syndicate of underwriters co-led by TD Securities Inc. and Raymond James Ltd., and including BMO Capital Markets, Canaccord Adams, RBC Capital Markets, Scotia Capital Inc., CIBC World Markets Inc., Blackmont Capital Inc., Wellington West Capital Markets Inc., and Haywood Securities Inc.
The Debentures have a face value of $1,000 per Debenture, a coupon of 7.75%, a maturity date of July 31, 2012, and are convertible at any time prior to maturity or the date fixed for redemption at the option of the holder, into trust units of Trinidad at a price of $19.30 per trust unit. The Debentures pay interest semi-annually on June 30 and December 31, with the initial interest payment to be made on December 31, 2007.
Trinidad Energy Services Income Trust is a growth oriented income trust that trades on the TSX under the symbol TDG.UN. Trinidad's divisions operate in the drilling and well servicing sectors of the North American oil and gas industry. With the completion of the Axxis acquisition and the current rig construction programs, the Trust will have 110 land drilling rigs and two barge rigs ranging in depths from 1,000 - 6,500 meters. In addition to its drilling rigs, Trinidad has 21 service rigs that have been completely retrofitted or are new within the past five years and 17 pre-set and coring rigs. Trinidad is focused on providing modern, reliable, expertly designed equipment operated by well-trained and experienced personnel. Trinidad's drilling fleet is one of the most adaptable and competitive in the industry.
- Trinidad Energy Issues Cash Distribution for February 2008 (Feb 15)
- Trinidad Energy Services Closes Axxis Acquisition (Jul 06)
- Trinidad Energy Services Acquires Axxis Drilling (Jun 13)