Precision Drilling Trust Announces December 2008 Distribution
18 Décembre 2008 - 1:00PM
Marketwired
(Canadian dollars)
Precision Drilling Trust ("Precision") announced today that its
Board of Trustees has approved a cash distribution for the month of
December 2008 of $0.13 per trust unit. The distribution will be
payable on January 15, 2009 to unitholders of record on December
31, 2008. The ex-distribution date is December 29, 2008. Holders of
Class B limited partnership units of Precision Drilling Limited
Partnership ("PDLP") will receive the economic equivalent
treatment.
The Board of Trustees has also approved a special year-end
distribution to be settled "in-kind" through the issuance of trust
units. The amount of the special distribution will not be
determined until after the vote of shareholders of Grey Wolf, Inc.
("Grey Wolf") on December 23, 2008 and the closing of the merger
with Grey Wolf, expected the same day. This will provide more
certainty for the Trustees to ensure that the 2008 distributions
declared will be at least equal to the Trust's taxable income for
2008, as required under Precision's Declaration of Trust. The
distribution will be payable to unitholders of record on December
31, 2008. The ex-distribution date is December 29, 2008.
Settled "in-kind" essentially means that unitholders will not
receive cash or additional trust units. Immediately after the
"in-kind" special year-end distribution, the outstanding trust
units of the Trust will be consolidated so that the number of trust
units will remain unchanged from the number outstanding prior to
the "in-kind" special year-end distribution. Holders of Class B
limited partnership units of PDLP will receive the economic
equivalent treatment.
Non-resident holders of trust units will be subject to
applicable Canadian withholding tax on the "in-kind" special
year-end distribution. The applicable withholding tax will be
settled from the December cash distribution paid in January
2009.
Information outlining the implication of the "in-kind" special
year-end distribution, consolidation process and resulting income
tax treatment for Trust and PDLP unitholders is located on the
Trust's website at:
www.precisiondrilling.com/UnitholderInfo/Taxation2008.cfm.
Following the closing of the merger with Grey Wolf, the Board of
Trustees anticipates that monthly distributions will be $0.04 per
trust unit, beginning with the distribution declared in January
2009 for payment in February 2009. The $0.09 per unit decrease from
prior monthly cash distributions reflects Precision's previously
announced debt reduction program. Distributions are considered and
declared by the Trustees monthly.
"In the near term, our fiscal priority is to reduce debt. By
lowering our near term distributions, we are positioning Precision
to have the financial strength and flexibility we believe is
necessary. Our goal, as always, is to deliver compelling long term
value appreciation for our unitholders" said Kevin Neveu, Chief
Executive Officer, Precision Drilling Corporation. "Precision
expects a positive vote in favor of the merger from Grey Wolf
shareholders at their special meeting on December 23, 2008. We will
move quickly to integrate the companies while continuing to focus
on delivering high-value high-performance services to our
customers."
About Precision
Precision is a leading provider of safe, high performance energy
services to the North American oil and gas industry. Precision
provides customers with access to an extensive fleet of contract
drilling rigs, service rigs, camps, snubbing units, wastewater
treatment units and rental equipment backed by a comprehensive mix
of technical support services and skilled, experienced
personnel.
Precision is headquartered in Calgary, Alberta, Canada.
Precision is listed on the Toronto Stock Exchange under the trading
symbol "PD.UN" and on the New York Stock Exchange under the trading
symbol "PDS".
Forward-Looking Information and Statements
Statements about Precision's expectations and all other
statements in this news release other than historical facts are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements may also
constitute "forward-looking information" within the meaning of
applicable Canadian securities legislation. These forward-looking
statements rely on a number of assumptions concerning future events
and are subject to a number of uncertainties and factors, many of
which are outside of Precision's control, which could cause actual
results to differ materially from such statements. Forward-looking
information includes, but is not limited to, statements regarding
Precision's distribution policy, general economic, market or
business condition, and Precision's proposed merger with Grey Wolf,
including whether and when the merger will be consummated. Among
the factors that could cause results to differ materially from
those indicated by such forward-looking statements are changes in
market conditions and other factors that could impact earnings, and
failure to receive approval of the merger agreement by the
shareholders of Grey Wolf and satisfaction of various other
conditions to the closing of the merger contemplated by the Merger
Agreement. Readers are cautioned not to place undue reliance on
such forward-looking information. No assurance can be given that
any of the events anticipated by the forward-looking information
will transpire or occur or, if any of them do so, what benefits
Precision will derive therefrom.
Additional Information and Where to Find It
In connection with the proposed merger, Precision has filed a
registration statement on Form F-4 which includes a proxy statement
of Grey Wolf and other materials, with the Securities and Exchange
Commission. SECURITYHOLDERS ARE URGED TO CAREFULLY READ THE
REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS, THE
SUPPLEMENTS THERETO AND THESE OTHER MATERIALS REGARDING THE
PROPOSED MERGER BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT
GREY WOLF, PRECISION AND PRECISION LOBOS CORPORATION, A
WHOLLY-OWNED SUBSIDIARY OF PRECISION CREATED AS A SPECIAL-PURPOSE
ACQUISITION VEHICLE, AND THE PROPOSED MERGER. Securityholders may
obtain a free copy of the registration statement and the proxy
statement/prospectus and other documents containing information
about Grey Wolf and Precision, without charge, at the SEC's website
www.sec.gov, Precision's website www.precisiondrilling.com and Grey
Wolf's website www.gwdrilling.com. Copies of the registration
statement and the proxy statement/prospectus and the SEC filings
that will be incorporated by reference therein may also be obtained
for free by directing a request to either Investor Relations,
Precision Drilling Trust, (403) 716-4500 or to Investor Relations,
Grey Wolf, Inc., (713) 435- 6100.
Participants in the Solicitation
Grey Wolf and Precision and their respective directors,
officers, trustees and other persons may be deemed to be
participants in the solicitation of proxies from Grey Wolf's
shareholders in respect of the proposed merger. Information about
the directors and executive officers of Grey Wolf and their
ownership of Grey Wolf common stock can be found in Grey Wolf's
proxy statement filed October 29, 2008 (as supplemented from time
to time, the "proxy statement/prospectus"). Information concerning
the directors and executive officers of Precision is included in
the proxy statement/prospectus. Additional information regarding
the identity of potential participants in the solicitation of
proxies in respect of the proposed merger and a description of
their direct and indirect interests, by security holdings or
otherwise, is also included in the proxy statement/prospectus.
Contacts: Doug Strong, Chief Financial Officer of Precision
Drilling Corporation, Administrator of Precision Drilling Trust
(403) 716-4500 (403) 264-0251 (FAX) Precision Drilling Corporation
4200, 150 - 6th Avenue S.W. Calgary, Alberta T2P 3Y7 Website:
www.precisiondrilling.com
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