On Jan. 13, Pacific Drilling SA (NYSE: PACD) received notice from the New York Stock Exchange stating that the company does not currently satisfy the minimum share price standard for continued listing of its common shares. On Jan. 12, the 30-trading-day average closing price per share of the company’s common shares was below $1, the minimum average share price required for continued listing under NYSE rules.
As required by NYSE rules, Pacific Drilling has notified the NYSE that it intends to cure the share price deficiency and is considering all available options to return to compliance with this continued listing standard. Under NYSE rules, the company has six months following receipt of the notification to regain compliance with this continued listing standard and avoid delisting.
Pacific Drilling can regain compliance at any time during the six-month cure period if on the last trading day of any calendar month during the cure period the company has a closing share price of at least $1 and an average closing share price of at least $1 over the 30-trading-day period ending on the last trading day of that month. If at the expiration of the cure period (July 13), both a $1 closing share price on the last trading day of the cure period and a $1 average closing share price over the 30-trading-day period ending on the last trading day of the cure period are not attained, the NYSE will commence suspension and delisting procedures.
The company’s common shares continue to be listed and to trade on the NYSE, subject to its compliance with other NYSE continued listing requirements. The NYSE notification does not affect the company’s US Securities and Exchange Commission reporting requirements. The company’s receipt of this notification did not affect any of its existing contractual or debt obligations.
Pacific Drilling is a floating-rig drilling contractor with a fleet of seven drillships.