Trinidad Drilling plans to use cash for fleet expansion, debt reduction

By Lisa Kerner

Charlotte, N.C., June 1 - Trinidad Drilling Ltd. anticipates having enough free cash flow to both add to its fleet and to reduce its overall leverage this year, chief financial officer Brent Conway said during the company's first-quarter earnings call on Wednesday.

Conway said Trinidad plans to reduce debt by growing its business and repaying debt.

Trinidad issued $450 million of 7 7/8% senior notes in December. The company said that in connection with the issuance of the notes, it terminated and replaced its existing credit facilities with a Canadian dollar revolving facility of C$200 million and a U.S. dollar revolving facility of $100 million.

The Calgary, Alta.-based company's divisions operate in the drilling, well-servicing, coring and barge-drilling sectors of the North American oil and natural gas industry.

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