Brief: Akita Drilling Ltd, Xtreme Drilling Announces Strategic Business Combination

AKITA Drilling

05/06/2018 13:40

June 5 (Reuters) - AKITA Drilling Ltd  AKTa.TO :
    * AKITA DRILLING LTD. AND XTREME DRILLING CORP. ANNOUNCE
STRATEGIC
BUSINESS COMBINATION
    * AKITA DRILLING LTD - TOTAL TRANSACTION VALUE IS
APPROXIMATELY
$209 MILLION
    * AKITA DRILLING LTD-XTREME SHAREHOLDERS WILL RECEIVE 0.29
OF
AKITA CLASS A NON-VOTING COMMON SHARE, $0.59 IN CASH FOR EACH
SHARE OF XTREME COMMON STOCK
    * AKITA DRILLING LTD - COMBINED COMPANY FORMED WITH XTREME
DRILLING WILL OPERATE UNDER AKITA NAME, WILL HAVE A FLEET OF 44
HIGH-SPEC DRILLING RIGS
    * AKITA DRILLING LTD -  DEAL ASSUMES ABOUT $10 MILLION OF
XTREME'S
NET DEBT
    * AKITA DRILLING - DEAL'S CASH CONSIDERATION TO BE FINANCED
FROM
CO'S CASH BALANCES,NEW CREDIT FACILITIES OF $120 MILLION AND
US$5 MILLION
    * AKITA DRILLING LTD - CASH CONSIDERATION WILL BE FINANCED
FROM
AKITA'S CASH BALANCES AND NEW CREDIT FACILITIES OF $120 MILLION
    * AKITA DRILLING LTD - CASH CONSIDERATION WILL ALSO BE
FINANCED
FROM US$5 MILLION WHICH HAVE BEEN COMMITTED BY ATB FINANCIAL
    * AKITA DRILLING LTD - TRANSACTION HAS RECEIVED UNANIMOUS
APPROVAL
BY BOARDS OF DIRECTORS OF BOTH AKITA AND XTREME

Source text for Eikon:  ID:nCNWkZKQZa 
Further company coverage:  AKTa.TO 

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