Trinidad Drilling Ltd. announces early renewal of revolving credit facility



    CALGARY, Feb. 12 /CNW/ - Trinidad Drilling Ltd. ("Trinidad" or the
"Corporation") is pleased to announce that it has renewed its revolving credit
facility (the "Facility"). The Facility has been resized from Canadian $250
million to $225 million. The Facility is backed by a syndicate of major
Canadian, United States and international financial institutions.
    "We are pleased to be able to announce the early renewal of our revolving
credit facility. We chose to reduce our existing facility level by $25 million
due to current financial market conditions and the costs associated with
having access to funds we do not believe we will need," said Brent Conway,
Trinidad's Executive Vice President and Chief Financial Officer.
    At December 31, 2008, Trinidad had drawn $65 million, or 29 percent, of
its renewed $225 million Facility. The Corporation does not anticipate that it
will need to access the full capacity of this Facility in 2009 or 2010.
    The Facility is due for renewal annually, with the next renewal scheduled
for April 2010. Trinidad has no indication that renewal would not be granted,
but to the extent that it is not granted, repayments of the outstanding
balance would not be due until April 2011.
    The terms adjusted by the renewal of the Facility were only those
associated with the terms of the revolving facility itself. All remaining
long-term debt facilities remain unchanged. The Facility requires monthly
interest payments at a specified spread over the Banker's Acceptance (BA)
rate. Using current BA pricing, Trinidad does not expect that its effective
interest rate in 2009 will change significantly from its 2008 level of
approximately 7.5 percent.
    The Facility is covered by the same debt covenants as the Corporation's
other term debt. Trinidad is currently well within all debt covenants and does
not anticipate any concerns with respect to these restrictions in the
foreseeable future. More specific information regarding the debt covenants is
available in the credit facility agreement which has been filed on SEDAR. This
document can be accessed at Trinidad's convertible debentures
are excluded from the debt covenants.
    Following the renewal of the Facility, Trinidad has no significant
term-debt repayment required until April 2011.

    A summary of Trinidad's existing term-debt facilities follows:

        Debt        Currency         Amount        Maturity        Repayment
    Facility                                                    requirements
    Revolving   Canadian Dollars  $225 million  Next renewal  If not renewed,
     Credit                                    in April 2010       repayment
     Facility                                                   due 364 days
    Five year   Canadian Dollars  $100 million   May 1, 2011 1% amortization,
     term                                                            balloon
     Facility                                                      repayment
                                                                 at maturity
    Five year   US Dollars        $125 million   May 1, 2011 1% amortization,
     term                                                            balloon
     Facility                                                      repayment
                                                                 at maturity

    The term debt mentioned above is secured by a general guarantee over the
assets of the Corporation.
    In addition, Trinidad had Convertible Unsecured Subordinated Debentures
of $354 million outstanding at December 31, 2008. The debentures have a face
value of $1,000, coupon rate of 7.75% and mature July 31, 2012. The debentures
are convertible into shares of the Corporation at the option of the holder at
any time prior to maturity at a conversion price of $19.30 per share. Trinidad
has the option to redeem the debentures after December 31, 2010. On redemption
or maturity, Trinidad has the option to repay the principal by issuing shares
in the Corporation. The debentures are excluded from any debt covenant

    Trinidad is a growth oriented corporation that trades on the TSX under
the symbol TDG. Trinidad's divisions operate in the drilling, well servicing
and barge drilling sectors of the North American oil and gas industry. With
the completion of the current rig construction program, Trinidad will have 126
drilling rigs ranging in depths from 1,000 - 6,500 metres. In addition to its
drilling rigs, Trinidad will have 26 service rigs, 20 pre-set and coring rigs
and 4 barge rigs currently operating in the Gulf of Mexico. 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, technologically advanced and competitive in the industry.

    Advisory Respecting Forward-Looking Statements

    This news release contains certain forward-looking information and
statements within the meaning of applicable securities laws. The use of any of
the words "expect", "anticipate", "continue", "estimate", "objective",
"ongoing", "may", "will", "project", "should", "believe", "plans", "intends",
"confident", "might" and similar expressions are intended to identify
forward-looking information or statements. In particular, but without limiting
the foregoing, this news release contains forward-looking information and
statements pertaining to the following: (i) the completion of the rig
construction programs on a timely basis and on economical terms; (ii) the
assumption that Trinidad's customers will honour their take or pay contracts;
(iii) the ability for Trinidad to attract and retain qualified crews to crew
their rigs; (iv) assumptions respecting capital expenditure programs and other
expenditures by oil and gas exploration and production companies; (v)
assumptions respecting commodity prices, foreign currency exchange rates and
interest rates; (vi) assumptions respecting supply and demand for commodities;
and (vii) other expectations, beliefs, plans, goals, objectives, assumptions,
information and statements about possible future events, conditions, results
of operations or performance. Various assumptions were used in drawing the
conclusions or making the projections contained in the forward-looking
statements throughout this news release.

    The forward-looking information and statements included in this news
release are not guarantees of future performance and should not be unduly
relied upon. Forward-looking statements are based on current expectations,
estimates and projections that involve a number of risks and uncertainties,
which could cause actual results to differ materially from those anticipated
and described in the forward-looking statements. Such information and
statements involve known and unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from those
anticipated in such forward-looking information or statements.
    Trinidad cautions that the foregoing list of assumptions, risks and
uncertainties is not exhaustive. The forward-looking information and
statements contained in this news release speak only as of the date of this
news release, and Trinidad assumes no obligation to publicly update or revise
them to reflect new events or circumstances, except as may be required
pursuant to applicable securities laws.
    This news release shall not constitute an offer to sell or the
solicitation of an offer to buy the shares in any jurisdiction. The shares
offered will not be and have not been registered under the United States
Securities Act of 1933 and may not be offered or sold in the United States or
to a United States person, absent registration, or an applicable exemption

For further information:

For further information: Lyle Whitmarsh, President & Chief Executive
Officer, (403) 265-6525; Brent Conway, Executive Vice President & CFO, (403)
265-6525; Lisa Ciulka, Director of Investor Relations, (403) 294-4401, email:

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Trinidad Drilling Ltd.

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