The majority of Trinidad Drilling Ltd.'s shareholders have voted to support amendments to the previously announced 6.625% senior notes due 2025 that change restrictive terms of the notes, including terms for default and other provisions.
According to a Jan. 15 update from Ensign Energy Services Inc., which is in the process of acquiring Trinidad, 78.1% of the senior notes have been tendered and purchased at an amount of 101% with interest. Other shareholders can tender notes until Feb. 11 and tendered noted may be withdrawn until Feb. 12.
Shareholders that gave consent to the note amendments before the consent deadline of Jan. 15 will receive $5 per $1,000 principal amount of notes, with settlement set for Feb. 14.
Holders that tender their notes before Feb. 11 will receive $1,010 for each $1,000 notes with an added accrued and unpaid interest.
Shareholders that delivered consent to the amendments by Jan. 15 and tender their notes before Feb. 11 will be entitled to both consent-only payment and change-of-control payment, which amounts to $1,015 for $1,000 notes.
Ensign said the purchases will be funded from its existing revolving credit facility or proceeds from new indebtedness of the companies.
Ensign announced in November 2018 it had taken a majority stake in Trinidad Drilling and recently announced plans to acquire the company's remaining shares.