/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./
TSX SYMBOL: TDG
CALGARY, Dec. 15, 2014 /CNW/ - Trinidad Drilling Ltd. ("Trinidad" or the "Company") is pleased to announce that it has amended its credit facilities, including extended terms and additional commitments under the US dollar denominated revolving facilities.
"The extension and amendment to our existing credit agreement provides Trinidad with added financial flexibility," said Lyle Whitmarsh, Trinidad's Chief Executive Officer. "Our credit facility remains undrawn currently; however the increased capacity and altered currency split aligns with Trinidad's long term strategy to grow its business when commodity prices improve. We will continue to manage our leverage, maintaining a conservative balance sheet while also pursuing opportunities to add value for our shareholders."
Trinidad's amended credit facilities now include a Canadian revolving facility of C$200 million and a US revolving facility of US$200 million, an increase from C$200 million and US$100 million previously. The facilities mature on December 12, 2018 with an annual renewal. The interest rates associated with the credit agreement incorporate a tiered interest rate, which varies depending on the results of the leverage ratio.
The amended credit agreement is jointly led by Royal Bank of Canada (RBC) and Wells Fargo Bank, N.A. (Wells Fargo), with RBC acting as the agent for the Canadian credit facilities and Wells Fargo, acting as the agent for the US credit facilities.
A copy of the credit agreement, including details of the financial covenants, will be available on SEDAR (www.sedar.com).
Trinidad is a corporation focused on sustainable growth that trades on the Toronto Stock Exchange under the symbol TDG. Trinidad's divisions operate in the drilling and barge-drilling sectors of the North American oil and natural gas industry with operations in Canada and the United States. In addition, through a joint venture agreement signed in the previous year, Trinidad began operating drilling rigs in Saudi Arabia, expects to begin operations in Mexico by the end of 2014, and is currently looking into operations in other international markets. 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.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy Trinidad's shares in any jurisdiction. Trinidad's shares 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 therefrom.
This news release contains certain forward-looking information relating to Trinidad's plans, strategies, objectives, expectations and intentions. The use of any of the words "expect", "may", "will", "believe", and similar expressions are intended to identify forward-looking information. In particular, but without limiting the foregoing, this news release contains forward-looking information respecting Trinidad's intentions respecting its long-term growth strategy and pursuit of opportunities that will add value for shareholders, Trinidad's debt levels and Trinidad's expectations respecting the commencement of operations in Mexico by the end of 2014. The forward-looking information included in this document is not a guarantee of future performance and should not be unduly relied upon.
Forward-looking information is 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 information. Such information involves 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. In addition, various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking information throughout this news release. In particular, such risks and assumptions include, but are not limited to: assumptions pertaining to the completion of announced rig construction programs on a timely basis and economical terms; the assumption that Trinidad's customers will honour their take-or-pay contracts; fluctuations in the demand for Trinidad's services; the ability of Trinidad to attract and retain qualified personnel, in particular field staff to crew the Company's rigs; the existence of competitors, technological changes and developments in the oilfield services industry; operating risks inherent in the oilfield services industry; assumptions respecting capital expenditure programs and other expenditures by oil and gas exploration and production companies; risks and assumptions regarding commodity prices, in particular oil and natural gas prices; risks and assumptions respecting supply and demand for commodities, in particular oil and natural gas; risks and assumptions regarding foreign currency exchange rates and interest rates; the existence of regulatory and legislative uncertainties; the possibility of changes in tax laws; risks and assumptions relating to general economic conditions including the capital and credit markets; and assumptions made about future performance and operations of the Company's joint venture arrangement. Trinidad cautions that the foregoing list of assumptions, risks and uncertainties is not exhaustive. Accordingly, readers should not place undue reliance on the forward-looking information contained herein. Further information on potential factors that could affect Trinidad are included in the risks detailed from time to time in Trinidad's annual information form and annual and quarterly management's discussion and analysis. These documents are available under Trinidad's profile on SEDAR at www.sedar.com. The forward-looking information contained in this news release is expressly qualified in its entirety by this cautionary statement.
The forward-looking information contained in this news release speaks only as of the date of this news release and Trinidad assumes no obligation to publicly update or revise such information to reflect new events or circumstances, except as may be required pursuant to applicable securities laws.
SOURCE: Trinidad Drilling Ltd.
For further information: Lyle Whitmarsh, Chief Executive Officer; Brent Conway, President; Lisa Ottmann, Vice President, Investor Relations, (403) 294-4401, [email protected]