Stampede Drilling plans to amend 10% convertibles, extend to 2023

By Wendy Van Sickle

Columbus, Ohio, Sept. 8 – Stampede Drilling Inc. plans to amend its 10% convertible unsecured debentures by entering into amending agreements with each debenture holder, according to a news release.

Under the terms of the amending agreements:

• The debenture would be extended by three years until October 2023;

• The conversion price will be lowered to $0.21 per common share of Stampede;

• Stampede will be able to pay accrued interest in common shares based on the average trading price of the common shares over the previous 30 trading days, subject to approval from the Toronto Venture Exchange; and

• The redemption thresholds will be updated, such that Stampede may not redeem the debentures prior to Oct. 31, 2021, may redeem the debentures on and after Oct. 31, 2021 and prior to Oct. 31, 2022, provided the current market price of the common shares is at least 125% of the conversion price and may redeem the debentures on and after Oct. 31, 2022.

As of Tuesday, holders of 98.58% of the principal amount of the debentures had entered into amending agreements with Stampede. In the event any of the remaining debenture holders elects not to enter into an amending agreement, such holders' debentures will continue to be in effect in accordance with their current terms.

Based in Calgary, Alta., Stampede provides drilling services in western Canada.

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