Drilling services company sells 10% 18-month convertible debentures
By Devika Patel
Knoxville, Tenn., Aug. 12 - Landdrill International Inc. said it raised C$250,000 in the third and final tranche of a C$5 million non-brokered private placement of 10% 18-month subordinated unsecured convertible debentures. The deal priced on July 27, and the company took in C$3.75 million on July 29 and C$1 million on Aug. 5.
The debentures are convertible at a conversion price of C$0.35 per common share, which equals a conversion premium of 34.62% to the July 26 closing share price of C$0.26. They are being sold at par of C$5,000.
Proceeds will be used to refinance the short-term loans incurred in connection with the acquisition of a drilling business in Mexico, to finance the remaining planned capital assets for 2011 and also for general working capital purposes.
Landdrill, based in Moncton, N.B., is a drilling services company.
| Issuer: | Landdrill International Inc.
|
| Issue: | Subordinated unsecured convertible debentures
|
| Amount: | C$5 million
|
| Maturity: | 18 months
|
| Coupon: | 10%
|
| Price: | Par of C$5,000
|
| Conversion price: | C$0.35
|
| Conversion premium: | 34.62%
|
| Agent: | Non-brokered
|
| Pricing date: | July 27
|
| Settlement date: | July 29 (for C$3.75 million), Aug. 5 (for C$1 million), Aug. 12 (for C$250,000)
|
| Stock symbol: | TSX Venture: LDI
|
| Stock price: | C$0.26 at close July 26
|
| Market capitalization: | C$19.45 million
|
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