Oilfield services company, Patterson-UTI Energy, has closed its merger with Seventy Seven Energy Inc. Stockholders of Seventy Seven Energy are entitled to receive 1.7851 shares of newly issued Patterson-UTI common stock in exchange for each share of Seventy Seven Energy. Patterson-UTI issued approximately 47.5 million shares pursuant to the merger.
Concurrent with the closing of the merger, Patterson-UTI repaid all of the outstanding debt of Seventy Seven Energy totaling $472 million ($403 million net of cash from Seventy Seven Energy). Additionally, Patterson-UTI has entered into an agreement with its lenders by which the available commitment under its revolving credit facility was increased to $632 million through September 2017, and to $490 million through March 2019.
Mark S. Siegel, Chairman of Patterson-UTI, stated, "I would like to welcome the employees, customers, and shareholders of Seventy Seven Energy to Patterson-UTI. We have always held the people and equipment at Seventy Seven Energy in high regard, and I am pleased for us to combine as one team. For Patterson-UTI, this is the most significant transaction since the merger of Patterson and UTI, and further solidifies our position as a leading high-spec drilling company and gives us one of the largest and most modern pressure pumping fleets in the industry."
Andy Hendricks, Patterson-UTI's Chief Executive Officer, commented, "This merger combines two highly complementary companies and further enhances our position as a leader in both drilling and pressure pumping. We are beginning the merger integration process, and I am pleased with the plan that we and Seventy Seven Energy have developed. While implementing this plan, our focus will continue to be on the safety and quality of our field operations."
Jerry Winchester, former Chief Executive Officer of Seventy Seven Energy, added, "With this merger, we bring together two strategically aligned companies into a financially well-positioned leader in U.S. land. We are excited to align ourselves with a company that shares a similar commitment to safety and service quality."