SAN ANTONIO, July 14, 2011 /PRNewswire/ -- Pioneer Drilling Company (NYSE Amex: PDC) (the "Company") today announced that it has priced an underwritten public offering of 6,000,000 shares of its common stock at a price to the public of $14.50 per share, for gross proceeds of approximately $87.0 million. The net proceeds to the Company from this offering are expected to be approximately $81.9 million, after deducting underwriting discounts and commissions and other estimated offering expenses. The Company has granted the underwriters a 30-day option to purchase up to 900,000 additional shares of its common stock. Goldman, Sachs & Co. and Jefferies & Company, Inc. are serving as joint bookrunners for this offering. The offering is expected to close on July 20, 2011, subject to customary closing conditions.
The Company intends to use the net proceeds from the offering to fund a portion of the purchase price in connection with the construction of new-build AC drilling rigs and for general corporate purposes, which may include capital expenditures, working capital, acquisitions or the repayment of indebtedness. The Company may invest funds not required immediately for such purposes in marketable securities and short-term investments.
The shares will be issued pursuant to a prospectus supplement and an accompanying prospectus filed as part of an effective shelf registration statement filed with the Securities and Exchange Commission (the "SEC") on Form S-3. A copy of the preliminary prospectus supplement and the accompanying base prospectus relating to this offering may be obtained from the SEC's website at http://www.sec.gov. A final prospectus supplement relating to this offering will be filed with the SEC and, when available, may be obtained from the above-mentioned SEC website or from Goldman, Sachs & Co., Prospectus Department, 200 West Street, New York, NY 10282, telephone: 1-866-471-2526, facsimile: 212-902-9316, or by emailing [email protected], or from Jefferies & Company, Inc., Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022, telephone: 1-888-449-2342 or by emailing [email protected].
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Pioneer Drilling Company
Pioneer Drilling Company provides contract land drilling services to independent and major oil and gas operators in Texas, Louisiana, Oklahoma, Kansas, the Rocky Mountain and Appalachian regions and internationally in Colombia through its Pioneer Drilling Services Division. The Company also provides well service rig, wireline and fishing and rental services to producers in the U.S. Gulf Coast, Mid-Continent, Rocky Mountain and Appalachian regions through its Pioneer Production Services Division. Its fleet consists of 71 land drilling rigs that drill at depths ranging from 6,000 to 25,000 feet, 80 well service rigs (73 550-horsepower rigs, six 600-horsepower rigs and one 400-horsepower rig), 99 wireline units, and fishing and rental tools.
Certain matters discussed in this press release are forward-looking statements that involve certain risks and uncertainties, including the offering of the common stock and the use of the proceeds therefrom. These risks and uncertainties include, among other things, the stability of the capital markets, other market conditions, customary closing conditions, and other factors and uncertainties inherent in providing contract drilling and well services discussed in the Company's filings with the SEC. Specifically, the Company cannot assure you that the proposed transaction described above will be consummated on the terms currently contemplated, if at all. The Company disclaims any obligation to update publicly its forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Pioneer Drilling Company