Precision Drilling extends credit facility

Precision Drilling announced that it has successfully extended its Senior Credit Facility and with strong cash flow generation during the first half of the year, it is well on track to meet its 2024 debt reduction and share repurchase targets. On June 28, 2024, Precision extended its Senior Credit Facility’s maturity date, revised the available borrowing capacity, and amended certain terms. The maturity date was extended to June 28, 2027, and the size was revised to $375 million, which includes an accordion feature to increase the facility to $750 million. Since the beginning of the year, Precision has reduced debt by $103 million, marking significant progress toward its 2024 debt reduction target of $150 million to $200 million. Second quarter debt repayments included the redemption of $56 million of 2026 unsecured senior notes and the repayment of $25 million of real estate credit facilities that were due in 2026 and 2028. As at June 30, 2024, Precision’s outstanding debt obligations include $217 million – 7.125% unsecured senior notes due January 15, 2026; $400 million – 6.875% unsecured senior notes due January 15, 2029; $8 million real estate credit facility due in 2025. With strong cash flow generation during the second quarter, Precision also returned $24 million to shareholders through share repurchases under its Normal Course Issuer Bid. For the first six months of the year, Precision has repurchased 369,309 common shares for $34 million, representing 3% of its outstanding common shares.