Contract drilling and production services company Pioneer Drilling Co. has closed its private offering of $250 million of 9.875% Senior Unsecured Notes due 2018. The notes are guaranteed by certain of Pioneer's existing and future domestic subsidiaries.
The San Antonio, TX-based company intends to use the net proceeds to repay a portion of its senior secured revolving credit facility. At the end of February, $257.5 million remained outstanding, of which, $1.9 million is due in 1Q10 and the remaining $255.6 million is due at on August 31, 2012.
Just recently, the company annouced its plan to expand well servicing operations in the shale plays. The company's drilling services division has five rigs working in the Marcellus, five operating in the Bakken, and five in various other shale plays.
Pioneer's 2010 capital expenditures budget is currently set at $80 million.
