May 18, 2012
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
*
(Exact name of registrant as specified in its charter)
Texas | ||||
(State or other jurisdiction of incorporation or organization) | 1381 (Primary Standard Industrial Classification Code Number) | 74-2088619 (I.R.S. Employer Identification No.) |
San Antonio, Texas 78209
(281) 618-0400
(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)
Carlos R. Peña
Vice President, General Counsel, Secretary and Compliance Officer
Pioneer Drilling Company
1250 N.E. Loop 410, Suite 1000
San Antonio, TX 78209
(210) 828-7689
(Name, address, including zip code, and telephone number, including area code, of agent for service)
Copies to:
Daryl L. Lansdale, Jr.
Fulbright & Jaworski L.L.P.
300 Convent Street, Suite 2200
San Antonio, TX 78205
(210) 270-9367
As soon as practicable after the effectiveness of this registration statement.
Large accelerated filerQ | Accelerated filer | |||||
Non-accelerated filer | £ | Smaller reporting company |
Exchange Act Rule 14d-1(d) (Cross-Border Third-Party Tender Offer) ¨£
Title of Each Class of Securities to be Registered | Amount to be Registered | Proposed Maximum Offering Price per Note | Proposed Maximum Aggregate Offering Price (1) | Amount of Registration Fee (1) | ||||
9.875% Senior Notes due March 2018 | $250,000,000 | 100% | $250,000,000 | $17,825 | ||||
Guarantees of 9.875% Senior Notes due 2018 (2) | (3) | (3) | (3) | None (4) | ||||
Title of Each Class of Securities to be Registered | Amount to be Registered | Proposed Maximum Offering Price per Note | Proposed Maximum Aggregate Offering Price (1) | Amount of Registration Fee (1) |
9.875% Senior Notes due March 2018 | $175,000,000 | 100% | $175,000,000 | $20,055 |
Guarantees of 9.875% Senior Notes due 2018 (2) | (3) | (3) | (3) | None (4) |
Exact Name of Registrant Guarantor (1) | State or Other Jurisdiction of Incorporation or Formation | IRS Employer Identification Number | Primary Industrial Classification Code | |||
Pioneer Drilling Services, Ltd. | Texas | 74-2982497 | 1381 | |||
Pioneer Production Services, Inc. | Delaware | 26-2031361 | 1389 | |||
Pioneer Global Holdings, Inc. | Delaware | 37-1544707 | 1381 | |||
Pioneer Well Services, LLC | Delaware | 05-0607572 | 1389 | |||
Pioneer Wireline Services Holdings, Inc. | Delaware | 87-0796455 | 1389 | |||
Pioneer Wireline Services, LLC | Delaware | 43-2092205 | 1389 | |||
Pioneer Fishing & Rental Services, LLC | Delaware | 04-3814399 | 1389 |
MAY 18, 2012 Offer to ExchangeAUGUST 10, 2010
Up To $250,000,000$175,000,000 of
9.875% Senior Notes due 2018
That Have Not Been Registered Under
The Securities Act of 1933
For
Up To $175,000,000 of
9.875% Senior Notes due 2018
That Have Been Registered Under
The Securities Act of 1933ForUp To $250,000,000 of9.875% Senior Notes due 2018That Have Been Registered UnderThe Securities Act of 1933
The terms of the new notes are identical to the terms of the old notes that were issued on We are offering to exchange We will exchange all old notes that you validly tender and do not validly withdraw before the exchange offer expires for an equal principal amount of new notes. Tenders of old notes may be withdrawn at any time prior to the expiration of the exchange offer. The exchange of new notes for old notes will not be a taxable event for U.S. federal income tax purposes. Broker-dealers who receive new notes pursuant to the exchange offer acknowledge that they will deliver a prospectus in connection with any resale of such new notes. Broker-dealers who acquired the old notes as a result of market-making or other trading activities may use the prospectus for the exchange offer, as supplemented or amended, in connection with resales of the new notes.March 11, 2010,November 21, 2011, except that the new notes will be registered under the Securities Act of 1933, as amended, and will not contain restrictions on transfer, registration rights or provisions for additional interest.up to $250,000,000all of our old notes for new notes with materially identical terms that have been registered under the Securities Act of 1933 and are freely tradable.2010,2012, unless extended.
2012 Material United States Federal Income Tax Consequences of the Exchange Offer Where You Can Find More Information and Incorporation by Reference general economic and business conditions and industry trends; levels and volatility of oil and gas prices; decisions about onshore exploration and development projects to be made by oil and gas producing companies; the continued demand for drilling services or production services in the geographic areas where we operate; the highly competitive nature of our business; our future financial performance, including availability, terms and deployment of capital; the supply of marketable drilling rigs, the continued availability of drilling rig, the continued availability of qualified personnel; the success or failure of our acquisition strategy, including our ability to finance acquisitions, effectively integrate acquired businesses and manage growth; changes in, or our failure or inability to comply with, governmental regulations, including those relating to the environment; and other factors discussed under “Risk Factors” in Item 1A of our Annual Reports on Form 10-K and any updates to those risk factors included in our Quarterly Reports on Form 10-Q. ii Drilling Division Locations Rig Count Production Services Division. Our Production Services Division provides a range of 2010 Page ii 1 12 2728 Use of Proceeds 29 30 Description of Notes 3637828783888388838883882009, and our Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2010 and June 30, 2010,2011, which are incorporated by reference in this prospectus.risks associated with economic cycles and their impact on capital markets and liquidity;workoverwell service rigs, wireline units and wirelinecoiled tubing units within the industry;workoverwell service rig, and wireline unit and coiled tubing unit components;ii2009, and our Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2010 and June 30, 2010,2011, each of which is incorporated by reference in this prospectus, and, to the extent applicable, any subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. In addition, certain statements include forward looking information that involves risks and uncertainties. See “Cautionary Statement Regarding Forward Looking Statements.”March 11, 2010November 21, 2011 as the “old notes.” We refer topreviously issued $250 million in aggregate principal amount of notes under the newIndenture. The old notes were issued as “additional notes” under the Indenture. The notes initially issued under the Indenture and the old notes are, and the new notes will be, a single series of securities under the Indenture, which we refer to collectively as the “notes.”7162 drilling rigs, 74 workover97 well service rigs, 79108 wireline units, ten coiled tubing units and a diverse fishing and rental tool service offering. We conduct our operations in many of the most attractive producing basins in the United States, including shale plays which are characterized by complex and technically demanding drilling. Since announcing our international expansion effort in 2007, we have placed eight drilling rigs in Colombia.We have continued to invest in the growth of all our service offerings through acquisitions and organic growth. On December 31, 2011, we acquired Go-Coil, L.L.C. ("Go-Coil"), a coiled tubing service company based in Maurice, Louisiana, to complement our existing production services offerings. Drilling services and production services are fundamental to establishing and maintaining the flow of oil and natural gas throughout the productive life of a well site and enable us to meet multiple needs of our customers.quarteryear ended June 30, 2010,December 31, 2011, Drilling Services accounted for 65%61% and Production Services accounted for 35%39% of our consolidated revenues.7162 drilling rigs inwhich are currently assigned to the following locations:South Texas 1915East Texas 3 West Texas 1519North Dakota 89North TexasUtah 4 UtahAppalachia 4 Oklahoma6Appalachia7Colombia / International8 Our fleet is comprised of rigs with various horsepower ratings, from 550 to 2,000. Higher horsepower rigs are particularly well suited to drilling demanding wells (such as horizontal or particularly deep wells), and typically receive higher dayrates than lower horsepower rigs.As of July 23, 2010, 44 drilling rigs are operating under drilling contracts. We have 21 drilling rigs that are idle and six drilling rigs have been placed in storage or “cold stacked” in our Oklahoma drilling division location due to low demand for drilling rigs in that region. We are actively marketing all our idle drilling rigs. During the second quarter of 2009, we established our Appalachian drilling division location and now have six drilling rigs operating in the Marcellus Shale. We are currently upgrading a seventh rig that will begin operating in the Marcellus Shale in September 2010. We have eight drilling rigs operating under drilling contracts in Colombia. In addition to our drilling rigs, we provide the drilling crews and most of the ancillary equipment needed to operate our drilling rigs.well services to oil and gas drillingexploration and producingproduction companies, including workoverwell services, wireline services, coiled tubing services and fishing and rental services. Our production services operations are managed through locations and are concentrated in the major United States onshore oil and gas producing regions in the Gulf Coast, Mid-Continent, Rocky Mountain and Appalachian states. We provide our services to a diverse group of oil and gas exploration and production companies. The primary production services we offer are the following:•Well Services. Existing and newly-drilled wells require a range of services to establish and maintain production over their useful lives. We use our fleet of 74 workover rigs in eight locations to provide these required services, including maintenance of existing wells, workover of existing wells, completion of newly-drilled wells, and plugging and abandonment of wells at the end of their useful lives. We have a premium workover rig fleet consisting of sixty-nine 550 horsepower rigs, four 600 horsepower rigs and one 400 horsepower rig. As of July 23, 2010, 72 workover rigs have crews assigned and are either operating or are being actively marketed. The remaining two workover rigs in our fleet are idle with no crews assigned.•Wireline Services. In order for oil and gas companies to better understand the reservoirs they are drilling or producing, they require logging services to accurately characterize reservoir rocks and fluids. When a producing well is completed, they also must perforate the production casing to establish a flow path between the reservoir and the wellbore. We use our fleet of wireline units to provide these important logging and perforating services. We provide both open and cased-hole logging services, including the latest pulsed-neutron technology. In addition, we provide services which allow oil and gas companies to evaluate the integrity of wellbore casing, recover pipe, or install bridge plugs. During the current year, we have acquired 12 additional wireline units, for a total of 79 wireline units in 20 locations.•Fishing and Rental Services.During drilling operations, oil and gas companies frequently need to rent unique equipment such as power swivels, foam circulating units, blow-out preventers, air drilling equipment, pumps, tanks, pipe, tubing, and fishing tools. We provide rental services out of four locations in Texas and Oklahoma. As of June 30, 2010 our fishing and rental tools have a gross book value of $13.1 million.•One of the Leading Providers in Many of the Most Attractive Basins.Our 71 drilling rigs operate in many of the most attractive producing basins in the Americas, including the Bakken, Marcellus and Eagle Ford Shales and Colombia. Our rigs are located in eight divisions throughout the United Statesand Colombia, diversifying our geographic exposure and limiting the impact of any regional slowdown. We believe the varied horsepower capabilities of our rigs (550 horsepower to 2,000 horsepower) make them well suited to these various areas where the optimal rig configuration is dictated by local geology and market conditions. Furthermore, certain of our divisions, such as Colombia, North Dakota and parts of our South Texas division, are located in basins with oil-focused drilling, which reduces our relative exposure to changes in natural gas drilling activity.•High Quality Assets.We believe our drilling rig fleet is modern and well maintained, with 31 newbuild rigs purchased since 2001, and the majority of these constructed from 2004 to 2006. The majority of our rig fleet has preferred equipment such as more efficient and lower emission engines, rounded bottom mud tanks, matched horsepower mud pumps and mobile or fast-paced substructures. In addition, 69% of our rig fleet has a horsepower rating of over 1,000 horsepower and 49% has top drives. We estimate that more than 75% of our drilling rigs are capable of drilling in shale plays, which typically require higher specification rigs than traditional areas. Our wireline and well servicing assets are among the newest in the industry, with 56% having been built in 2007 or later and all but one of the well servicing rigs having at least 550 horsepower. We believe that our modern and well maintained fleet allows us to realize higher contract and utilization rates by being able to offer our customers equipment that is more reliable and requires less downtime than older equipment.One of the Leading Providers in Many of the Most Attractive Basins. •Provide Services Throughout the Well Life Cycle. By offering our customers drilling, production and related services, we capture revenue throughout the life cycle of a well and diversify our business. Our Drilling Services Division performs work prior to initial production, and our Production Services Division provides services such as logging, completion, perforation, workover and maintenance throughout the productive life of a well. We also provide certain end-of-well-life activities such as plugging and abandonment. Drilling and production services activity has historically exhibited different degrees of demand fluctuation, and we believe the diversity of our services reduces our exposure to decreases in demand for any single service activity. The diversity of our services also enhances customer revenues by allowing us to cross-sell services in our various business divisions.•Excellent Safety Record.We believe that our excellent safety record and reputation are critical to winning new business and expanding our relationships with existing customers. Our commitment to safety also reduces our business risk by keeping our employees safe and our equipment in good condition. We have consistently exceeded the International Association of Drilling Contractors, or IADC, average for recordable incidents and have achieved a 65% improvement in recordable incidents since 2005. Much of our equipment contains additional safety features such as the iron roughnecks we have installed on 63% of our drilling rigs. In July and November 2009, we received scores of 100% on health, safety, environment and quality audits by Ecopetrol S.A. (“Ecopetrol”) (NYSE: EC), one of the leading oil companies in Latin America, for whom we currently operate eight drilling rigs in Colombia. We believe our strong performance on such measures has contributed significantly to our growing business with Ecopetrol.•Experienced Management Team.We believe that important competitive factors in establishing and maintaining long-term customer relationships include having an experienced and skilled management team and maintaining employee continuity. Our CEO, Wm. Stacy Locke, joined Pioneer in 1995 as President and has over 25 years of professional experience. Our two division presidents, F.C. “Red” West and Joe Eustace, have over 70 years of combined oilfield services experience. Our management team has operated through numerous oilfield services cycles and provides us with valuable long-term experience and a detailed understanding of customer requirements. We also seek to maximize employee continuity and minimize employee turnover by maintaining modern equipment, a strong safety record, ongoing growth and competitive compensation. We have devoted, and will continue to devote, substantial resources to our employee safety and training programs and maintaining low employee turnover.
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Our 62 drilling rigs operate in many of the most attractive producing basins in the Americas, including the Bakken, Marcellus and Eagle Ford Shales, and Permian and Uintah Basins, as well as Colombia. Our drilling rigs are located in seven divisions throughout the United States and Colombia, diversifying our geographic exposure and limiting the impact of any regional slowdown. We believe the varied capabilities of our drilling rigs make them well suited to these areas where the optimal rig configuration is dictated by local geology and market conditions. Furthermore, certain of our division locations, such as Colombia, North Dakota, West Texas and parts of our South Texas division location, are in regions with oil-focused drilling, which reduces our relative exposure to changes in natural gas drilling activity.
Further Strengthen our Competitive Position in the Most Attractive Domestic Markets. |
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Increase our Exposure to Oil-Driven Drilling Activity. We have intentionally increased our exposure to oil-related activities by redeploying certain of our assets into predominately oil-producing regions and actively seeking contracts with oil-focused producers. As of April 20, 2012, approximately 89% of our working drilling rigs and 80% of our production services assets are operating on wells that are targeting or producing oil or liquids rich natural gas. We believe that our flexible rig fleet and production services assets allow us to target opportunities focused on both natural gas and oil.
Corporate Structure
(1) | The Company’s well services, wireline services and fishing and rental business are conducted by Pioneer Well Services, LLC, Pioneer Wireline Services Holdings, Inc., Pioneer Wireline Services, LLC and Pioneer Fishing & Rental Services, LLC. |
(2) | The Company’s non-U.S. drilling business is conducted by subsidiaries of Pioneer Global Holdings, Inc., which are Pioneer Services Holdings, LLC, |
Exchange Offer
Exchange Offer | We are offering to exchange new notes for old notes. The new notes will evidence the same debt as the old notes and will be issued under and entitled to the benefits of the same indenture that govern the old notes. Because the new notes will be registered, they will not be subject to transfer restrictions and will not have registration rights. |
Expiration Date | The exchange offer will expire at 5:00 p.m., New York City time, on , |
Condition to the Exchange Offer | The registration rights agreement does not require us to accept old notes for exchange if the exchange offer, or the making of any exchange by a holder of the old notes, would violate any applicable law or interpretation of the staff of the Securities and Exchange Commission. The exchange offer is not conditioned on a minimum aggregate principal amount of old notes being tendered. |
Procedures for Tendering Old Notes | To participate in the exchange offer, you must follow the procedures established by The Depository Trust Company, which we call “DTC,” for tendering notes held in book-entry form. These procedures require that (i) the exchange agent receive, prior to the expiration date of the exchange offer, a computer generated message known as an “agent’s message” that is transmitted through DTC’s automated tender offer program, which we call “ATOP,” and (ii) DTC confirms that: •DTC has received your instructions to exchange your old notes, and •you agree to be bound by the terms of the letter of transmittal. For more information on tendering your old notes, please refer to the section in this prospectus entitled “Exchange Offer—Terms of the Exchange Offer,” “—Procedures for Tendering,” and “Description of Notes—Book-Entry, Delivery and Form.” |
DTC has received your instructions to exchange your notes, and
you agree to be bound by the terms of the letter of transmittal.
For more information on tendering your old notes, please refer to the section in this prospectus entitled “Exchange Offer—Terms of the Exchange Offer,” “—Procedures for Tendering,” and “Description of Notes—Book-Entry, Delivery and Form.”
Withdrawal of Tenders | You may withdraw your tender of old notes at any time prior to the expiration date. To withdraw, you must submit a notice of withdrawal to the exchange agent using ATOP procedures before 5:00 p.m., New York City time, on the expiration date of the exchange offer. Please refer to the section in this prospectus entitled “Exchange Offer—Withdrawal of Tenders.” |
Acceptance of Old Notes and Delivery of New Notes | If you fulfill all conditions required for proper acceptance of old notes, we will accept any and all old notes that you properly tender in the exchange offer on or before 5:00 p.m., New York City time, on |
the expiration date. We will return any old note that we do not accept for exchange to you without expense promptly after the expiration date and acceptance of the old notes for exchange. Please refer to the section in this prospectus entitled “Exchange Offer—Terms of the Exchange Offer.” |
Fees and Expenses | We will bear expenses related to the exchange offer. Please refer to the section in this prospectus entitled “Exchange Offer—Fees and Expenses.” |
Use of Proceeds | The issuance of the new notes will not provide us with any new proceeds. We are making this exchange offer solely to satisfy our obligations under our registration rights agreement. |
Consequences of Failure to Exchange Old Notes | If you do not exchange your old notes in this exchange offer, you will no longer be able to require us to register the old notes under the Securities Act of 1933 except in limited circumstances provided under the registration rights agreement. In addition, you will not be able to resell, offer to resell or otherwise transfer the old notes unless we have registered the old notes under the Securities Act of 1933, or unless you resell, offer to resell or otherwise transfer them under an exemption from the registration requirements of, or in a transaction not subject to, the Securities Act of 1933. |
Material United States Federal Income Tax Consequences | The exchange of new notes for old notes in the exchange offer will not be a taxable event for United States federal income tax purposes. Please read “Material United States Federal Income Tax Consequences of the Exchange Offer.” |
Exchange Agent | We have appointed Wells Fargo Bank, N.A. as exchange agent for the exchange offer. You should direct questions and requests for assistance, requests for additional copies of this prospectus or the letter of transmittal to the exchange agent by mail: Wells Fargo Bank, |
Terms of the New Notes
Issuer | Pioneer Drilling Company |
Securities Offered | $ |
Maturity | March 15, 2018 |
Interest Payment Dates | Interest on the notes will be paid semi-annually in arrears on March 15 and September 15 of each year commencing on |
Guarantees | The payment of the principal, premium and interest on the new notes will be fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by certain of our existing domestic subsidiaries and by certain of our future domestic subsidiaries. Any guarantees will be senior unsecured obligations of our subsidiary guarantors and will have the same ranking with respect to the indebtedness of our subsidiary guarantors as the notes will have with respect to our indebtedness. See “Description of Notes—The Guarantees.” |
Not all of our subsidiaries will guarantee the notes. The non-guarantor subsidiaries will not have any payment obligations under the notes, the guarantees or the indenture. In the event of a bankruptcy, liquidation or reorganization of any non-guarantor subsidiary, such non-guarantor subsidiary will pay the holders of its debt and other liabilities, including its trade creditors, before it will be able to distribute any of its assets to us. As of June 30, 2010, the non-guarantor subsidiaries collectively owned approximately 16% of our consolidated total assets and held approximately $1.2 million of cash and cash equivalents. For the three months ended June 30, 2010, the non-guarantor subsidiaries had revenues of approximately $20.3 million and a loss from operations of approximately $0.4
Statements in our Quarterly Report on Form 10-Q for the |
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Ranking | The new notes will be our senior unsecured obligations. The new notes will: •rank equally in right of payment with all of our existing and future senior indebtedness; •rank senior in right of payment to any of our future subordinated indebtedness; and •effectively rank junior in right of payment to the existing and future debt and other liabilities of our subsidiaries that do not guarantee the notes and to all of our and any subsidiaries’ existing and future secured indebtedness, including borrowings under our senior secured revolving credit facility, to the extent of the value of the assets securing such indebtedness. |
rank equally in right of payment with all of our existing and future senior indebtedness;
rank senior in right of payment to any of our future subordinated indebtedness; and
effectively rank junior in right of payment to the existing and future debt and other liabilities of our subsidiaries that do not guarantee the notes and to all of our and any subsidiaries’ existing and future secured indebtedness, including borrowings under our senior secured revolving credit facility, to the extent of the value of the assets securing such indebtedness.
Optional Redemption | We will have the option to redeem the Prior to March 15, 2014, we may redeem the notes, in whole or in part, at a “make-whole” redemption price described under “Description of Notes—Optional Redemption,” together with any accrued and unpaid interest to the date of redemption. In addition, prior to March 15, 2013, we may, on one or more occasions, redeem up to 35% of the aggregate principal amount of notes issued under the indenture at a redemption price of 109.875% of the principal amount, plus any accrued and unpaid interest to the redemption date, with the net proceeds of certain equity offerings, if at least 65% of the aggregate principal amount of the notes issued under the indenture for the notes remains outstanding after such redemption and the redemption occurs within 120 days of the closing of the equity offering. |
Prior to March 15, 2014, we may redeem the new notes, in whole or in part, at a “make-whole” redemption price described under “Description of Notes—Optional Redemption,” together with any accrued and unpaid interest to the date of redemption.
In addition, prior to March 15, 2013, we may, on one or more occasions, redeem up to 35% of the aggregate principal amount of notes issued under the indenture at a redemption price of 109.875% of the principal amount, plus any accrued and unpaid interest to the redemption date, with the net proceeds of certain equity offerings, if at least 65% of the aggregate principal amount of the notes issued under the indenture for the notes remains outstanding after such redemption and the redemption occurs within 120 days of the closing of the equity offering.
Mandatory Offers to Purchase | Upon the occurrence of a change of control, holders of the |
Certain Covenants | We will issue the new notes under our indenture with Wells Fargo Bank, N.A., as trustee. The indenture will, among other things, restrict our and our restricted subsidiaries’ ability to: •pay dividends on stock, repurchase stock or redeem subordinated debt or make other restricted payments; •incur, assume or guarantee additional indebtedness or issue disqualified stock; •create liens on our assets; •enter into sale and leaseback transactions; •restrict dividends, loans or other asset transfers from our restricted subsidiaries; •consolidate with or merge with or into, or sell all or substantially all of our properties to, another person; •enter into transactions with affiliates; and •enter into new lines of business. These covenants will be subject to important exceptions and qualifications, which are described under “Description of Notes—Certain Covenants.” |
pay dividends on stock, repurchase stock or redeem subordinated debt or make other restricted payments;
incur, assume or guarantee additional indebtedness or issue disqualified stock;
create liens on our assets;
enter into sale and leaseback transactions;
restrict dividends, loans or other asset transfers from our restricted subsidiaries;
consolidate with or merge with or into, or sell all or substantially all of our properties to, another person;
enter into transactions with affiliates; and
enter into new lines of business.
These covenants will be subject to important exceptions and qualifications, which are described under “Description of Notes—Certain Covenants.”
Transfer | The new notes generally will be freely |
Risk Factors | Investing in the new notes involves risks. See “Risk Factors” for a discussion of certain factors you should consider in evaluating an investment in the new notes. |
permitted thereunder. limiting our ability to use operating cash flow in other areas of our business because we must dedicate a substantial portion of these funds to make principal and interest payments on our indebtedness; making us more vulnerable to a downturn in our business, our industry or the economy in general as a substantial portion of our operating cash flow will be required to make principal and interest payments on our indebtedness, making it more difficult to react to changes in our business and industry and market conditions; limiting our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate; limiting our ability to obtain additional financing that may be necessary to operate or expand our business; putting us at a competitive disadvantage to competitors that have less debt; and increasing our vulnerability to rising interest rates regarding our floating rate debt. paying dividends on stock, repurchasing stock, redeeming subordinated debt or making other restricted payments; incurring, assuming or guaranteeing additional indebtedness or issuing disqualified stock; creating liens on our assets; making acquisitions or investments; entering into sale and leaseback transactions; restricting dividends, loans or other asset transfers from our restricted subsidiaries; consolidating with, or merging with or into, or selling all or substantially all of our properties to, another person; entering into transactions with affiliates; entering into new lines of business; and •making capital expenditures. the holders of such indebtedness could elect to declare all the funds borrowed thereunder to be due and payable, together with accrued and unpaid interest, which would likely cause a cross-default or cross-acceleration under the indenture and any other debt agreements; the lenders under our senior secured revolving credit facility could elect to terminate their commitments thereunder, cease making further loans, which would negatively affect our access to liquidity, and institute foreclosure proceedings against our assets; and we could be forced into bankruptcy or liquidation. refinancing or restructuring our debt; selling assets; reducing or delaying acquisitions or capital investments, such as refurbishments of our rigs and related equipment; and/or seeking to raise additional capital. permitted thereunder. the subsidiary incurred the guarantee with the intent to hinder, delay, or defraud any present or future creditor, or contemplated insolvency with a design to favor one or more creditors to the exclusion of others; or the subsidiary did not receive fair consideration or reasonably equivalent value for issuing the subsidiary guarantee and, at the time it issued the subsidiary guarantee, the subsidiary: was insolvent or became insolvent as a result of issuing the subsidiary guarantee, was engaged or about to engage in a business or transaction for which the remaining assets of the subsidiary constituted unreasonably small capital, or intended to incur, or believed that it would incur, debts beyond its ability to pay those debts as they matured, changes in the overall market for non-investment grade securities; changes in our financial performance or prospects; the financial performance or prospects for companies in our industry generally; the number of holders of the notes; the interest of securities dealers in making a market for the notes; and prevailing interest rates and general economic conditions. our revenues, cash flows and profitability; the fair market value of our drilling rig fleet and production service assets; our ability to maintain or increase our borrowing capacity; our ability to obtain additional capital to finance our business and make acquisitions, and the cost of that capital; and our ability to retain skilled rig personnel whom we would need in the event of an upturn in the demand for our services. the cost of exploring for, producing and delivering oil and gas; the rate of decline of existing and new oil and gas reserves;2009. and our Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2010 and June 30, 2010,2011, which are incorporated by reference in this prospectus and, to the extent applicable, any subsequently filed Quarterly Reports on Form 10-Q or Current Reports on Form 8-K.June 30, 2010,March 31, 2012, we had approximately $266.4 million$419.62million of indebtedness outstanding (net of the $10.4 million unamortized portion of the original issue discount) and the ability to incur additional indebtedness under the indenture, including under the fixed charge coverage ratio and permitted debt baskets, and borrowing availability of approximately $193.0$241.0 million of additional indebtedness under our senior secured revolving credit facility, in each case, as There are no limitations on our ability to access this borrowing capacity other than maintaining compliance with the covenants under the senior secured revolving credit facility. At June 30, 2010, we were in compliance with our financial covenants. In order to remain in compliance with our financial covenants, our borrowing availability under the senior secured revolving credit facility was limited to an additional $50.4 million as of June 30, 2010. Our level of indebtedness, and the covenants contained in the agreements governing our debt, could have important consequences, including:June 30, 2010,March 31, 2012, we had the ability, subject to satisfying certain specified conditions, to incur additional indebtedness under the indenture, including under the fixed charge coverage ratio and permitted debt baskets, and approximately $193.0 $241.0million of additional indebtedness under our senior secured revolving credit facility. There are no limitations on our ability to access this borrowing capacity other than maintaining compliance with the covenants under the senior secured revolving credit facility. At June 30, 2010, we werefacility, in compliance with our financial covenants. In order to remain in compliance with our financial covenants, our borrowing availability under the senior secured revolving credit facility was limited to an additional $50.4 millioneach case, as of June 30, 2010.dowill not guarantee the notes. As of June 30, 2010,December 31, 2011, the non-guarantor subsidiaries, heldincluding Go-Coil, collectively owned approximately 16%21% of our consolidated total assets. In addition, forassets and held approximately $8.1 million of cash and cash equivalents. For the three months June 30, 2010,year ended December 31, 2011, the non-guarantorsnon-guarantor subsidiaries, not including Go-Coil, had revenues of approximately $20.3$109.5 million and a lossincome from operations of approximately $0.4$5.3 million. As of March 31, 2012, the non-guarantor subsidiaries, including Go-Coil, collectively owned approximately 21% of our consolidated total assets and held approximately $6.8 million of cash and cash equivalents. For the quarter ended March 31, 2012, the non-guarantor subsidiaries, including Go-Coil, had revenues of approximately $41.1 million and income from operations of approximately $4.7 million. All of our foreign subsidiaries and any domestic subsidiaries that we designateddesignate as unrestricted subsidiaries are not required to guarantee the notes. As a result, if any of our non-guarantor subsidiaries becomes insolvent, liquidates, reorganizes, dissolves or otherwise winds up, holders of the debt and other liabilities, including trade credit, of such non-guarantor subsidiary will be entitled to payment on their claims from the assets of that subsidiary before any of those assets are made available to us or any guarantors of the notes. Consequently, your claims in respect of the notes areJune 30, 2010,March 31, 2012, we had approximately $250 million ofno secured debt outstanding and the ability subject to satisfying certain specified conditions, to incur additional secured indebtedness under the indenture, including under the fixed charge coverage ratio and permitted debt baskets, and borrowing availability of approximately $193.0$241.0 million under our senior secured revolving credit facility. There are no limitations on our ability to access this borrowing capacity other than maintaining compliance with the covenants under the senior secured revolving credit facility. At June 30, 2010, we werefacility, in compliance with our financial covenants. In order to remain in compliance with our financial covenants, our borrowing availability under the senior secured revolving credit facility was limited to an additional $50.4 millioneach case, as of June 30, 2010.permitted thereunder. Each of the subsidiary guarantors has also guaranteed our obligations under our senior secured revolving credit facility and has granted the lenders thereunder a security interest in its assets to secure its guarantee. As a result, if we or a subsidiary guarantor is declared bankrupt, becomes insolvent, liquidates, reorganizes or otherwise winds up, holders of any secured debt of ours or the subsidiary guarantor will be entitled to payment of their claims from our assets or the assets of the guarantor, as applicable, before any of those assets are made available to us or any guarantors of the notes. Holders of the notes will participate ratably in our remaining assets with all holders of our unsecured indebtedness that do not rank junior to the notes, including all of our other general creditors and the holders of our secured debt to the extent such debt is not satisfied with the proceeds of the collateral therefor, based upon the respective amounts owed to each holder or creditor. In any of the foregoing events, we cannot assure you that there will be sufficient assets to pay amounts due on the notes. As a result, holders of the notes would likely receive less, ratably, than holders of secured indebtedness. Because there is no public market for the new notes, you may not be able to resell them.new notes or that any such trading market that does develop will be does not develop or is not maintained, the market price and liquidity of our new notes may be adversely affected. If a market for the new notes develops, they may trade at a discount from their initial offering price. The trading market and price for the notes may be adversely affected by:new notes, if any, may be subject to similar volatility. Prospective investors in the new notes should be aware that they may be required to bear the financial risks of such investment for an indefinite period of time.
available pipeline and other oil and gas transportation capacity;
the levels of oil and gas storage;
the ability of oil and gas exploration and production companies to raise capital;
economic conditions in the United States and elsewhere;
actions by OPEC, the Organization of Petroleum Exporting Countries;
political instability in the Middle East and other major oil and gas producing regions;
governmental regulations, both domestic and foreign;
domestic and foreign tax policy;
weather conditions in the United States and elsewhere;
the pace adopted by foreign governments for the exploration, development and production of their national reserves;
the price of foreign imports of oil and gas; and
the overall supply and demand for oil and gas.
natural gas prices that would adversely affect our business. the type and condition of each of the competing drilling, workover and well-servicing rigs; the mobility and efficiency of the rigs; the quality of service and experience of the rig crews; the safety records of the rigs; the offering of ancillary services; and the ability to provide drilling and production equipment adaptable to, and personnel familiar with, new technologies and drilling and production techniques. better withstand industry downturns; compete more effectively on the basis of price and technology; retain skilled rig personnel; and build new rigs or acquire and refurbish existing rigs so as to be able to place rigs into service more quickly than us in periods of high drilling demand. blowouts; cratering; fires and explosions; loss of well control;As a result of declinesand uncertainty in the capital markets due to the downturn in the global economic environment that began in late 2008 and a continued sluggish economy during 2009, our customers have reduced spending on exploration and production and this has resulted in a decrease in demand for our services. We are unable to determine whether customers and/or vendors and suppliers will be able to access financing necessary to sustain or increase their current level of operations, fulfill their commitments and/or fund future operations and obligations. The sluggish global economic environment may impact industry fundamentals, and the potential resulting continued sluggish demand for drilling and production services could adversely affect our business.Oil and natural gas prices, and market expectations of potential changes in these prices, significantly impact the level of worldwide drilling and production services activities. Oil and natural gas prices arefell significantly below the levels seen in late 2008, due to a deteriorating global economic environment which remained sluggishand while oil prices have improved during 2009. The lower oil2010 and natural gas prices, as well as the slow recovery in the global credit markets, have caused exploration and production companies to reduce their overall level of drilling and production services activity and spending. When drilling and production activity and spending declines, both dayrates and utilization have historically declined. As a result, the declines in oil and natural gas prices and the sluggish economy have adversely affected our business and operating results. Though oil and2011, natural gas prices have modestly increased during the first half of 2010, futureremained depressed. Future declines in and volatility in oil and natural gas prices and a continued sluggish economy could materially and adversely affect our business and financial results.Moreover, the sluggish global economic environment may continue to impact fundamentals that are critical to our industry, such as the global demand for, and consumption of, oil and natural gas. Reduced demand for oil and natural gas generally results in lower prices for these commodities and may impact the economics of planned drilling projects and ongoing production projects, resulting in the curtailment, reduction, delay or postponement of such projects for an indeterminate period of time. Companies that planned to finance exploration, development or production projects through the capital markets may be forced to curtail, reduce, postpone or delay drilling or production services activities, and also may experience an inability to pay suppliers. The sluggish global economic environment could also impact our vendors’ and suppliers’ ability to meet obligations to provide materials and services in general. If any of the foregoing were to occur, it could have a material adverse effect on our business and financial results.We experiencedThe current global economic environment for 2012 is uncertain, which could lead to a substantial decreasedecline in revenueoil and utilization rates during the last quarter of 2008 and during 2009. During the first half of 2010, we experienced a modest increase in revenue and utilization rates.workover and well-servicingwell service rigs are mobile and can be moved from one market to another in response to market conditions heightens the competition in the industry and may result in an oversupply of rigs in an area. Contract drilling companies and other oilfield service companies compete primarily on a regional basis, and the intensity of competition may vary significantly from region to region at any particular time. If demand for drilling or production services improves in a region where we operate, our competitors might respond by moving in suitable rigs from other regions. An influx of rigs from other regions could rapidly intensify competition, reduce profitability and make any improvement in demand for drilling or production services short-lived.
collapse of the borehole;
damaged or lost drilling equipment; and
damage or loss from natural disasters.
suspension of operations;
damage to, or destruction of, our property and equipment and that of others;
personal injury and loss of life;
environmental damage.
Go-Coil to complement our existing production services offerings.
unanticipated costs and assumption of liabilities and exposure to unforeseen liabilities of acquired businesses, including environmental liabilities;
difficulties in integrating the operations and assets of the acquired business and the acquired personnel;
limitations on our ability to properly assess and maintain an effective internal control environment over an acquired business in order to comply with applicable periodic reporting requirements;
potential losses of key employees and customers of the acquired businesses;
risks of entering markets in which we have limited prior experience; and
increases in our expenses and working capital requirements.
risks of war, terrorism, civil unrest and kidnapping of employees;
expropriation, confiscation or nationalization of our assets;
renegotiation or nullification of contracts;
foreign taxation;
the inability to repatriate earnings or capital due to laws limiting the right and ability of foreign
changing political conditions and changing laws and policies affecting trade and investment;
concentration of customers;
regional economic downturns;
the overlap of different tax structures;
the burden of complying with multiple and potentially conflicting laws;
the risks associated with the assertion of foreign sovereignty over areas in which our operations are conducted;
difficulty in collecting international accounts receivable; and
potentially longer payment cycles.
environmental quality;
pollution control;
remediation of contamination;
preservation of natural resources;
worker safety.
the disposal of hazardous substances, oilfield waste and other waste materials and restrict the types, quantities and concentrations of those substances that can be released into the environment. Several of those laws also require removal and remedial action and other cleanup under certain circumstances, commonly regardless of fault. Our operations routinely involve the handling of significant amounts of waste materials, some of which are classified as hazardous substances. Planning, implementation and maintenance of protective measures are required to prevent accidental discharges. Spills of oil, natural gas liquids, drilling fluids and other substances may subject us to penalties and cleanup requirements. Handling, storage and disposal of both hazardous and non-hazardous wastes are also subject to these regulatory requirements. In addition, our operations are often conducted in or near ecologically sensitive areas, such as wetlands, which are subject to special protective measures and which may expose us to additional operating costs and liabilities for accidental discharges of oil, gas, drilling fluids, contaminated water or other substances, or for noncompliance with other aspects of applicable laws and regulations. Regulation may become even stricter if laws are changed as a result of the April 2010 oil spill in the Gulf of Mexico.
States.
which is now being considered by the U.S. Senate, among other alternative bills. In addition, more than one-third of the states already have begun implementing legal measures to reduce emissions of greenhouse gases.
On September 22, 2009,
production facilities.
Years Ended March 31, | Nine Months Ended December 31, | Years Ended December 31, | Six Months Ended June 30, | |||||||||
2006 | 2007 | 2007 | 2008 | 2009 | 2010 | |||||||
Ratio of earnings to fixed charges | 109.47x | 719.62x | 556.52x | —(1) | —(2) | —(3) |
Nine Months Ended December 31, | Years Ended December 31, | Three Months Ended March 31, | |||||||
2007 | 2008 | 2009 | 2010 | 2011 | 2012 | ||||
Ratio of earnings to fixed charges | 556.5x | —(1) | —(2) | —(3) | 1.6x | 2.6x |
file an exchange offer registration statement with the SEC with respect to the exchange offer for the new notes, and
use commercially reasonable efforts to have the exchange offer completed by the 390th270th day following issuance of the notes.
will not be able to rely on the interpretation of the staff of the SEC,
will not be able to tender its old notes in the exchange offer, and
must comply with the registration and prospectus delivery requirements of the Securities Act of 1933 in connection with any sale or transfer of the old notes unless such sale or transfer is made pursuant to an exemption from such requirements.
the exchange offer is not permitted by applicable law or SEC policy, or
the exchange offer is not for any reason completed within 390270 days following the date of issuance of the notes, or
any holder (a) is prohibited by applicable law or SEC policy from participating in the exchange offer; (b) may not resell the exchange notes acquired in the exchange offer to the public without delivering a prospectus (other than by reason of such holder’s status as an affiliate of the Company or any Guarantor) and the prospectus contained in the exchange offer registration statement is not appropriate or available for such resales; or (c) is a broker-dealer and holds notes acquired directly from the Company or one of its affiliates.
to extend the exchange offer, or
to terminate the exchange offer,
have been cured or waived. Any old notes received by the exchange agent that are not properly tendered and as to which the defects or irregularities have not been cured or waived will be returned to the tendering holder, unless otherwise provided in the letter of transmittal, promptly following the expiration date.
certificate for the old notes, or a timely book-entry confirmation of the old notes, into the exchange agent’s account at the book-entry transfer facility;
a properly completed and duly executed letter of transmittal or an agent’s message; and
all other required documents.
any new notes that you receive will be acquired in the ordinary course of your business;
you are not our “affiliate,” as defined in Rule 405 of the Securities Act of 1933; and
if you are a broker-dealer that will receive new notes for your own account in exchange for old notes that you acquired as a result of market-making activities or other trading activities, you will deliver a prospectus (or to the extent permitted by law, make available a prospectus) in connection with any resale of such new notes.
all registration and filing fees and expenses; all fees and expenses of compliance with federal securities and state “blue sky” or securities laws; accounting fees, legal fees incurred by us, disbursements and printing, messenger and delivery services, and telephone costs; and related fees and expenses. general unsecured obligations of the Company; senior in right of payment to all existing and future subordinated Indebtedness of the Company; pari passu in right of payment with any existing and future senior Indebtedness of the Company; effectively junior in right of payment to all existing and future secured Indebtedness of the Company, including Indebtedness under our Credit Facilities, to the extent of the value of the unconditionally guaranteed by the Guarantors on a senior unsecured basis; and effectively junior in right of payment to all existing and future Indebtedness and other liabilities, including trade payables, of our non-guarantor Subsidiaries. a general unsecured obligation of the Guarantor; senior in right of payment to all existing and future subordinated Indebtedness of that Guarantor; pari passu in right of payment with any existing and future senior Indebtedness of that Guarantor; and effectively junior in right of payment to all existing and future secured Indebtedness of that Guarantor, including its guarantee of Indebtedness under our Credit Facilities, to the extent of the value of the collateral securing that Indebtedness. from constituting a fraudulent transfer under applicable law. See “Risk Factors—Risks Relating to the Notes—The guarantees of the notes by our subsidiaries could be deemed fraudulent conveyances under certain circumstances, and a court may subordinate or void the subsidiary guarantees.”shallwill be final and binding on all parties. We will deem any old notes so withdrawn not to have been validly tendered for exchange for purposes of the exchange offer.lessplus any bond discount,premium, as reflected in our accounting records on the date of exchange. Accordingly, we will not recognize any gain or loss for accounting purposes in connection with the exchange offer.March 11, 2010November 21, 2011 (the “indenture”) among itself, the Guarantors and Wells Fargo Bank, National AssociationN.A. as trustee (the “trustee”). The terms of the new notes will include those stated in the indenture and those made part of the indenture by reference to the Trust Indenture Act of 1939, as amended. new note will be treated as the owner of it for all purposes. Only registered holders of the new notes will have rights under the indenture, and all references to “holders” in this description are to registered holders of the new notes.and the new notes and the initial notes then outstanding.June 30, 2010,March 31, 2012, we had approximately $419.2 million of indebtedness outstanding and the Company (excluding its subsidiaries)ability to incur additional indebtedness under the indenture, including under the fixed charge coverage ratio and permitted debt baskets, and borrowing availability of approximately $241.0 million under our senior secured revolving credit facility, in each case, as permitted thereunder.$266.4$419.2 million, (net of the $10.4 million unamortized portion of the original issue discount), $22.8 millionnone of which (excluding letters of credit issued under our senior secured revolving credit facility) is secured Indebtedness under the Credit Agreement and, therefore, effectively senior to the notes to the extent of the value of the collateral, and $0.2approximately $0.7 million of which would have been pari passuin right of payment with the notes and approximately $0.4 million of which would have been junior in right of payment to the notes.June 30, 2010,March 31, 2012, the Guarantors had total Indebtedness of approximately $266.3$1.1 million, $22.8 millionnone of which (excluding committed letter of credit under our senior secured revolving credit facility) is secured Indebtedness under the Credit Agreement and, therefore, effectively senior to the notes to the extent of the value of the collateral, approximately $2.8$0.7 million of which would have been pari passuin right of payment with the notes and approximately $1.1$0.4 million of which would have been junior in right of payment to the notes.June 30, 2010,December 31, 2011, the Excluded Subsidiaries had assets representingnon-guarantor subsidiaries, including Go-Coil, collectively owned approximately 16%21% of our consolidated total assets and held approximately $1.2$8.1 million of cash and cash equivalents. For the three monthsyear ended June 30, 2010,December 31, 2011, the Excluded Subsidiariesnon-guarantor subsidiaries, not including Go-Coil, had revenues of approximately $20.3$109.5 million and a lossincome from operations of approximately $0.4$5.3 million. As of March 31, 2012, the non-guarantor subsidiaries, including Go-Coil, collectively owned approximately 21% of our consolidated total assets and held approximately $6.8 million of cash and cash equivalents. For the quarter ended March 31, 2012, the non-guarantor subsidiaries, including Go-Coil, had revenues of approximately $41.1 million and income from operations of approximately $4.7 million. In addition, some of ourCurrentConsolidated Financial Statements in our Annual Report on Form 8-K filed on February 23, 201010-K for the year ended December 31, 2011 and in Note 9 to our Condensed Consolidated Financial Statements in our Quarterly Report on Form 10-Q for the quarterly periodquarter ended June 30, 2010,March 31, 2012, which are incorporated by reference herein.the old notes with an initial$425 million aggregate principal amount of $250.0 million.notes under the indenture. The Company may issue additional notes from time to time after the date hereof. Any offering of additional notes will be subject to all of the covenants in the indenture including the covenant described below under the caption “— Certain Covenants—Incurrence of Indebtedness and Issuance of Preferred Stock.” The notes and any additional notes will be treated as a single class for all purposes under the indenture, including, without limitation, waivers, amendments, redemptions and offers to purchase. Unless the context otherwise requires, for purposes of this “Description of Notes” section, reference to the notes includes any additional notes that may be issued. Any additional notes issued will be guaranteed by each Guarantor party to the indenture. The notes will be issued only in fully registered form, without coupon, in denominations of $2,000 and integral multiples of $1,000 in excess thereof.year, beginning on September 15, 2010.year. The Company will make each interest payment to the holders of record on the immediately preceding March 1 and September 1. Interest on the new notes will accrue from March 11, 2010, the date of original issuance, or if interest has already been paid, from the date it was most recently paid.paid on the old notes. Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months. For the avoidance of doubt and whether or not so repeated in any provision herein, all references to “interest” mean the interest rate borne by the notes and any Default Interest that accrues as set forth under “Events of Default and Remedies.”(1)immediately after giving effect to that transaction, no Default exists; and(2)either:(a)the Person acquiring the property in any such sale or disposition or the Person formed by or surviving any such consolidation or merger (if other than the Company or another Guarantor) assumes all the obligations of that Guarantor under the indenture, its Subsidiary Guarantee and the registration rights agreement, pursuant to a supplemental indenture satisfactory to the trustee and an amendment to the registration rights agreement; or(b)the Net Proceeds of such sale or other disposition are applied in accordance with the covenant described under the caption “—Repurchase at the Option of Holders—Asset Sales,” provided, however, that the transfer, sale or other disposition of all or substantially all of the assets of, directly or indirectly, the Guarantors as a whole will be governed by the “Merger, Consolidation or Sale of Assets” covenant and may be subject to the covenant contained under the caption “—Repurchase at the Option of Holders—Change of Control.”(1) in connection with any sale or other disposition of all or substantially all of the assets of that Guarantor (including by way of merger or consolidation) to a Person that is not (either before or after giving effect to such transaction) a Restricted Subsidiary of the Company, if the sale or other disposition complies with the covenant described under the caption “—Repurchase at the Option of Holders—Asset Sales;” or (2) in connection with any sale or other disposition of such amount of Capital Stock as would result in such Guarantor no longer being a Restricted Subsidiary of the Company to a Person that is not (either before or after giving effect to such transaction) a Restricted Subsidiary of the Company, if the sale or other disposition complies with the covenant described under the caption “—Repurchase at the Option of Holders—Asset Sales;” or (3) if the Company designates any Restricted Subsidiary that is a Guarantor as an Unrestricted Subsidiary in accordance with the provisions described under the caption “—Certain Covenants—Designation of Restricted and Unrestricted Subsidiaries;” or (4) if the guarantee by a Guarantor of all other Indebtedness of the Company or any other Guarantor is released, terminated or discharged, except by, or as a result of, payment by such Guarantor under such guarantee; or (5) upon Legal Defeasance or Covenant Defeasance as described under the caption”—Legal Defeasance and Covenant Defeasance” or upon satisfaction and discharge of the indenture as described under caption “—Satisfaction and Discharge;” or (6) if the Guarantor becomes an Immaterial Subsidiary.
Year 2014 2015 2016 respect to an expenditure or Investment, in compliance with clause (2) or (3), and that expenditure or Investment is substantially completed within a date one year and six months after the date of such Asset Sale. Pending the final application of any Net Proceeds, the Company will temporarily reduce any Credit Facility or other revolving credit borrowings, or, in the absence of any such borrowings, invest the Net Proceeds in any manner that is not prohibited by the indenture. their right to require the Company to repurchase the notes upon a Change of Control or an Asset Sale could cause a default under these other agreements, even if the Change of Control or Asset Sale itself does not, due to the financial effect of such repurchases on the Company. If a Change of Control or Asset Sale occurs at a time when the Company is prohibited from purchasing notes, the Company could seek the consent of its applicable lenders to the purchase of notes or could attempt to refinance the borrowings that contain such prohibition. If the Company does not obtain a consent or repay those borrowings, the Company will remain prohibited from purchasing notes. In that case, the Company’s failure to purchase tendered notes would constitute an Event of Default under the indenture which could, in turn, constitute a default under the other indebtedness. Finally, the Company’s ability to pay cash to the holders of notes upon a repurchase may be limited by the Company’s then existing financial resources. See “Risk Factors—Risks Relating to the Notes—We may not be able to repurchase the notes upon a change of control or in connection with an asset sale as required by the indenture.” “—Repurchase at the Option of Holders—Change of Control;” “—Repurchase at the Option of Holders—Asset Sales;” “—Incurrence of Indebtedness and Issuance of Preferred Stock;” “—Liens;” “—Dividend and Other Payment Restrictions Affecting Subsidiaries;” clause (4) of the covenant described under “—Merger, Consolidation or Sale of Assets;” “—Transactions with Affiliates;” “—Additional Subsidiary Guarantees;” and “—Business Activities” 50% of the Consolidated Net Income of the Company for the period (taken as one accounting period) from the beginning of the first fiscal quarter commencing after the Issue Date to the end of(1) at least 65% of the aggregate principal amount of notes issued under the indenture (which amount includes additional notes) remains outstanding immediately after the occurrence of each such redemption (excluding notes held by the Company and its Subsidiaries); and (2) the redemption occurs within 120 days after the date of the closing of such Equity Offering. On and after March 15, 2014, the Company may redeem, at any time and from time to time, all or a part of the notes upon not less than 30 nor more than 60 days’ notice, at the redemption prices (expressed as percentages of principal amount) set forth below plus accrued thereon to the applicable redemption date, if redeemed during the twelve-month period beginning on March 15 of the years indicated below: Percentage 104.938 % 102.469 % 100.000 % Year Percentage 2014 .......................................................................................................................................... 104.938% 2015 .......................................................................................................................................... 102.469% 2016 .......................................................................................................................................... 100.000% if any, thereon, to the redemption date. Notice of such redemption must be mailed to holders of the notes called for redemption not less than 30 nor more than 60 days prior to the redemption date. The notice need not set forth the Applicable Premium but only the manner of calculation thereof. The indenture provides that with respect to any redemption the Company will notify the trustee of the Applicable Premium with respect to the notes promptly after the calculation and that the trustee will not be responsible for such calculation.(1) accept for payment all notes or portions of notes properly tendered pursuant to the Change of Control Offer; (2) deposit with the paying agent an amount equal to the Change of Control Payment in respect of all notes or portions of notes properly tendered pursuant to the Change of Control Offer; and (3) deliver or cause to be delivered to the trustee the notes properly accepted together with an officers’ certificate stating the aggregate principal amount of notes or portions of notes being purchased by the Company. (1) the Company (or the Restricted Subsidiary, as the case may be) receives consideration at the time of the Asset Sale at least equal to the Fair Market Value of the assets or Equity Interests issued or sold or otherwise disposed of; and (2) at least 75% of the consideration received in the Asset Sale by the Company or such Restricted Subsidiary is in the form of cash or Cash Equivalents, or any combination thereof. (1) any liabilities, as shown on the Company’s or such Restricted Subsidiary’s most recent balance sheet, of the Company or any Restricted Subsidiary (other than contingent liabilities and liabilities that are by their terms subordinated to the notes or any Subsidiary Guarantee) that are assumed by the transferee of any such assets pursuant to a customary novation agreement that releases the Company or such Restricted Subsidiary from further liability; (2) any securities, notes or other obligations received by the Company or any such Restricted Subsidiary from such transferee that are converted by the Company or such Restricted Subsidiary into cash or Cash Equivalents within 180 days following the closing of such Asset Sale, to the extent of the cash or Cash Equivalents received in that conversion; and (3) the Fair Market Value of all forms of consideration other than cash or Cash Equivalents received for all Asset Sales since the Issue Date does not exceed in the aggregate 10.0% of Consolidated Net Worth of the Company at the time each determination is made.(1) to prepay, repay, purchase, repurchase, redeem, defease or otherwise acquire or retire Senior Debt of the Company or any Indebtedness of a Restricted Subsidiary; (2) to acquire all or substantially all of the assets of, or a majority of the Voting Stock of, a Permitted Business; (3) to make a capital expenditure in a Permitted Business; or (4) to acquire other non-current assets that are used or useful in a Permitted Business. (1) declare or pay any dividend or make any other payment or distribution on account of any Equity Interests of the Company or any of its Restricted Subsidiaries (including, without limitation, any payment in connection with any merger or consolidation involving the Company or any of its Restricted Subsidiaries) or to the direct or indirect holders of the Equity Interests of the Company or any of its Restricted Subsidiaries in their capacity as such (other than dividends or distributions declared or paid in Equity Interests (other than Disqualified Stock) of the Company or to the Company or any Restricted Subsidiary of the Company); (2) purchase, redeem or otherwise acquire or retire for value (including, without limitation, in connection with any merger or consolidation involving the Company) any Equity Interests of the Company or any direct or indirect parent of the Company; (3) make any payment to purchase, redeem, defease or otherwise acquire or retire for value any Indebtedness that is subordinated to the notes or the Subsidiary Guarantees, except a payment of interest or principal at a Stated Maturity thereof; or (4) make any Restricted Investment (1) no Default has occurred and is continuing or would occur as a consequence of such Restricted Payment; (2) the Company would, at the time of such Restricted Payment and after giving pro forma effect thereto as if such Restricted Payment had been made at the beginning of the applicable four-quarter period, have been permitted to incur at least $1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in the first paragraph of the covenant described below under the caption “—Incurrence of Indebtedness and Issuance of Preferred Stock;” and (3) such Restricted Payment, together with the aggregate amount of all other Restricted Payments made by the Company and its Restricted Subsidiaries after the beginning of the first fiscal quarter commencing after the Issue Date (excluding Restricted Payments permitted by clauses (2), (3), (4), (5), (6), (7), (8) and (9) of the next succeeding paragraph), is less than the sum, without duplication, of: (a)
the Company’s most recently ended fiscal quarter for which internal financial statements are available at the time of such Restricted Payment (or, if such Consolidated Net Income for such period is a deficit, less 100% of such deficit), plus |
(b) | 100% of the aggregate net cash proceeds, or the Fair Market Value of any Permitted Business or assets used or useful in a Permitted Business, received by the Company from the issue or sale, in either case since the beginning of the first fiscal quarter commencing after the Issue Date of (i) Equity Interests of the Company (other than Disqualified Stock) or (ii) debt securities of the Company that have been converted into or exchanged for such Equity Interests (other than Equity Interests (or Disqualified Stock or such debt securities) sold to a Restricted Subsidiary of the Company), together with the aggregate cash received at the time of such conversion or exchange, or received by the Company from any such conversion or exchange of such debt securities sold or issued prior to the beginning of such first fiscal quarter, plus |
(c) | to the extent not already included in Consolidated Net Income for such period, (i) if any Restricted Investment that was made after the beginning of the first fiscal quarter commencing after the Issue Date is sold for cash or otherwise liquidated or repaid for cash, the lesser of (1) the cash return of capital with respect to such Restricted Investment, including without limitation repayment of principal of any Restricted Investment constituting a loan or advance (less the cost of disposition, if any) and (2) the initial amount of such Restricted Investment, plus (ii) the net reduction in such Restricted |
(d) | if any Unrestricted Subsidiary is redesignated as a Restricted Subsidiary after the Issue Date, the lesser of (i) the fair market value of the Company’s and its Restricted Subsidiaries’ Investment in such Subsidiary as of the date of such redesignation or (ii) the aggregate fair market value of the Company’s and its Restricted Subsidiaries’ Investment in such Subsidiary as of the date on which such Subsidiary was originally designated as an Unrestricted Subsidiary and all Investments made by the Company and its Restricted Subsidiaries in such Unrestricted Subsidiary that were treated as Restricted Paymentssince such designation, in each case as of the date of such Investment. |
exists.
(1) | the payment of any dividend or distribution, or the consummation of an irrevocable redemption of subordinated Indebtedness of the Company or any of its Restricted Subsidiaries, within 60 days after the date of declaration of the dividend or distribution or delivery of the irrevocable notice of redemption, as the case may be, if at the date of such declaration the dividend payment or distribution, or date on which such notice is delivered, such dividend, distribution or redemption, as the case may be, would have complied with the provisions of the indenture; |
(2) | the redemption, repurchase, retirement, defeasance or other acquisition of any subordinated Indebtedness of the Company or any Restricted Subsidiary or of any Equity Interests of the Company or any of its Restricted Subsidiaries in exchange for, or out of the net cash proceeds of the substantially concurrent sale (other than to a Subsidiary of the Company) of, Equity Interests of the Company (other than Disqualified Stock); provided that the amount of any such net cash proceeds that are utilized for any such redemption, repurchase, retirement, defeasance or other acquisition will be excluded from clause (3)(b) of the preceding paragraph; |
(3) | the making of any principal payment on, or the defeasance, redemption, repurchase or other acquisition of, prior to a Stated Maturity, subordinated Indebtedness or Disqualified Stock of the Company or preferred stock of any Restricted Subsidiary with the net cash proceeds from an incurrence of, or exchange for the issuance of, Permitted Refinancing Indebtedness; |
(4) | the declaration or payment of any dividend or distribution by a Restricted Subsidiary of the Company to the holders of its Equity Interests on a pro rata basis; |
(5) | so long as no Default has occurred and is continuing or, immediately after giving effect thereto, would be caused thereby, the repurchase, redemption or other acquisition or retirement for value of any Equity Interests of the Company or any Restricted Subsidiary of the Company held by any existing or former employee or director of the Company (or any of its Restricted Subsidiaries) pursuant to any employment agreements, equity subscription agreement, stock option agreement, management equity plan or stock option plan or other management or employee benefit plan, agreement or trust or similar agreements and plans; provided that the aggregate price paid for all such repurchased, redeemed, acquired or retired Equity Interests pursuant to this clause (5) may not exceed the sum of (i) $2.5 million in any twelve-month period, (ii) the aggregate net proceeds received by the Company during such twelve-month period from the issuance of such Equity |
(6) | so long as no Default has occurred and is continuing or, immediately after giving effect thereto, would be caused thereby, the declaration and payment of dividends to holders of any class or series of Disqualified Stock of the Company issued in accordance with the terms of the indenture to the extent such dividends are included in the definition of “Fixed Charges;” |
(7) | the acquisition of Equity Interests by the Company (i) in connection with the exercise of stock options or stock appreciation rights by way of cashless exercise; (ii) in connection with the satisfaction of withholding tax obligations; or (iii) that may be deemed to occur, in connection with an acquisition by the Company or any of its Restricted Subsidiaries, by the return of Equity Interests constituting a portion of the purchase consideration in settlement of indemnification claims; |
(8) | so long as no Default has occurred and is continuing or, immediately after giving effect thereto, would be caused thereby, the making of payment on, or the defeasance, redemption, repurchase, retirement or other acquisition, in each case, prior to its Stated Maturity, of any subordinated Indebtedness of the Company or any Restricted Subsidiary by payments out of Excess Proceeds remaining after completion of an Asset Sale Offer; |
(9) | the purchase by the Company of fractional shares arising out of stock dividends, splits or combinations or business combinations or conversion of convertible or exchangeable securities of debt or equity of the Company; and |
(10) | so long as no Default has occurred and is continuing or, immediately after giving effect thereto, would be caused thereby, and to the extent not otherwise permitted in any other of the preceding clauses, Restricted Payments in an aggregate amount since the date notes are first issued not to exceed the greater of (A) $20.0 million and (B) 2.5% of Consolidated Net Tangible Assets, as of the date of making such Restricted Payments. |
(1) | Indebtedness of the Company or any Guarantors of Indebtedness under one or more Credit Facilities in an aggregate principal amount at any one time outstanding (with outstanding letters of credit being deemed to have a principal amount equal to the maximum potential liability of the Company and its Subsidiaries thereunder at each relevant time of determination) not to exceed the greater of (a) $250.0 million and (b) 20% of Consolidated Net Tangible Assets; |
(2) | the Existing Indebtedness; |
(3) | Indebtedness of the Company or any Guarantors represented by the notes and the Subsidiary Guarantees; |
(4) | Indebtedness (including Acquired Debt) of the Company or any of its Restricted Subsidiaries represented by Capital Lease Obligations, mortgage financings or purchase money obligations, in each case, incurred for the purpose of financing all or any part of the acquisition of, or cost of construction, improvement, material repair or development of property, plant or equipment used in a Permitted Business, in an aggregate principal amount, including all Permitted Refinancing Indebtedness incurred to extend, defease, refund, refinance or replace any Indebtedness incurred pursuant to this clause (4), not to exceed the greater of (a) $25.0 million and (b) 3.0% of Consolidated Net Tangible Assets, at any time outstanding; |
(5) | Permitted Refinancing Indebtedness of the Company or any of its Restricted Subsidiaries issued in exchange for, or the net proceeds of which are used to extend, defease, refund, refinance or replace, any Indebtedness (other than intercompany Indebtedness) that was incurred under the first paragraph of this covenant or clauses (2), (3), (5) or (13) of this paragraph; |
(6) | intercompany Indebtedness between or among the Company and any of its Restricted Subsidiaries incurred by the Company or any of its Restricted Subsidiaries; provided that: |
(a) | if the Company or any Guarantor is the obligor on such Indebtedness and a Restricted Subsidiary of the Company which is not a Guarantor is the obligee thereon, such Indebtedness must be expressly subordinated to the prior payment in full in cash of all Obligations with respect to the notes, in the case of the Company, or the Subsidiary Guarantee, in the case of a Guarantor; and |
(b) | (i) any subsequent issuance or transfer of Equity Interests that results in any such Indebtedness being held by a Person other than the Company or a Restricted Subsidiary and (ii) any sale or other transfer of any such Indebtedness to a Person that is not either the Company or a Restricted |
Subsidiary will be deemed, in each case, to constitute an incurrence of such Indebtedness by the Company or a Restricted Subsidiary, as the case may be, on the date of such issuance, sale or transfer that is not then permitted by this clause (6); |
(7) | Hedging Obligations of the Company or any of its Restricted Subsidiaries incurred in the normal course of business and not for speculative purposes, designed to protect the Company or such Restricted Subsidiary against fluctuations in interest rates or currency exchange rates with respect to Indebtedness incurred or against fluctuations in the price of commodities used by that entity at |
(8) | Guarantees by the Company or any of its Restricted Subsidiaries of Indebtedness of the Company or any Restricted Subsidiary that was permitted to be incurred by another provision of this covenant; provided that if such Indebtedness being guaranteed is subordinated in right of payment to the notes or a Subsidiary Guarantee, then the Guarantee of that Indebtedness by the Company or the Guarantor shall be subordinated in right of payment to the notes or the Guarantor’s Subsidiary Guarantee, as the case may be; |
(9) | Indebtedness of the Company or any of its Restricted Subsidiaries in respect of workers’ compensation claims, self-insurance obligations, bid, performance, surety, appeal and similar bonds and obligations and completion guarantees provided by the Company or a Restricted Subsidiary in the ordinary course of business; |
(10) | Indebtedness of the Company or any of its Restricted Subsidiaries arising from the honoring by a bank or other financial institution of a check, draft or similar instrument (except in the case of daylight overdrafts) drawn against insufficient funds in the ordinary course of business; provided that such Indebtedness is extinguished within five Business Days following the Company’s receipt of notice of the incurrence thereof; |
(11) | Indebtedness of the Company or any of its Restricted Subsidiaries represented by agreements of the Company or a Restricted Subsidiary of the Company providing for indemnification, adjustment of purchase price or similar obligations, earn-outs or other similar obligations, in each case, incurred or assumed in connection with the acquisition or disposition of any business, assets or Capital Stock of the Company or any such Restricted Subsidiary; provided that the maximum aggregate liability in respect of all such Indebtedness incurred in connection with a disposition shall at no time exceed the gross proceeds actually received by the Company and its Restricted Subsidiaries in connection with such disposition; |
(12) | Acquired Debt of the Company or any of its Restricted Subsidiaries to the extent such Indebtedness was Indebtedness of (a) a Subsidiary prior to the date on which such Subsidiary became a Restricted Subsidiary of the Company or (b) a Person that was acquired (by acquisition of its Capital Stock, merger, consolidation or otherwise) by the Company or any of its Restricted Subsidiaries (other than Indebtedness incurred in connection with, or in contemplation of, such acquisition); provided that, at the time such Subsidiary becomes a Restricted Subsidiary or is acquired by the Company or any Restricted Subsidiary of the Company, the Company would have been able to incur $1.00 of additional Indebtedness pursuant to the first paragraph of this covenant immediately after giving effect to the incurrence of such Indebtedness pursuant to this clause (12); and |
(13) | to the extent not otherwise permitted by any other Permitted Debt clause, Indebtedness of the Company or any of its Restricted Subsidiaries in an aggregate principal amount (or accreted value, as applicable) at any time outstanding, including all Permitted Refinancing Indebtedness incurred to refund, refinance or replace any Indebtedness incurred pursuant to this clause (13), not to exceed $50.0 million. |
time an Unrestricted Subsidiary fails to meet the definitional requirements as an Unrestricted Subsidiary, it will thereafter cease to be an Unrestricted Subsidiary for purposes of the indenture, and any then outstanding Indebtedness of such Subsidiary will be deemed to be incurred by a Restricted Subsidiary of the Company as of such date, and such incurrence will be subject to this covenant.
(1) | the accreted value of the Indebtedness, in the case of any Indebtedness issued with original issue discount; |
(2) | the principal amount of the Indebtedness, in the case of any other Indebtedness; |
(3) | in respect of Indebtedness of another Person secured by a Lien on the assets of the specified Person, the lesser of: |
(a) | the Fair Market Value of such assets at the date of determination; and |
(b) | the amount of the Indebtedness of the other Person; and |
(4) | if Indebtedness is secured by a letter of credit that only secures such Indebtedness, then the aggregate amount deemed incurred by such Indebtedness and such letter of credit shall be equal to the greater of (a) the principal amount of such Indebtedness and (b) the amount that can be drawn under such letter of credit. |
agreements governing Existing Indebtedness, Credit Facilities and Hedging Obligations and any amendments, modifications, restatements, renewals, increases, supplements, refundings, replacements or refinancings of those agreements; provided that such agreements, Credit Facilities, Hedging Obligations and the amendments, modifications, restatements, renewals, increases, supplements, refundings, replacements or refinancings thereof are no more restrictive,(1) the Company or that Restricted Subsidiary, as applicable, could have (a) incurred Indebtedness in an amount equal to the Attributable Debt relating to such sale and leaseback transaction under the covenant described above under the caption “—Incurrence of Indebtedness and Issuance of Preferred Stock,” and (b) incurred a Lien to secure such Indebtedness pursuant to the covenant described above under the caption “—Liens;” (2) the gross cash proceeds of that sale and leaseback transaction are at least equal to the Fair Market Value of the property that is the subject of that sale and leaseback transaction; and (3) the transfer of assets in that sale and leaseback transaction is permitted by, and the Company or such Restricted Subsidiary applies the proceeds of such transaction in compliance with, the covenant described above under the caption “—Repurchase at the Option of Holders—Asset Sales.” (1) pay dividends or make any other distributions on its Capital Stock to the Company or any of its Restricted Subsidiaries or with respect to any other interest or participation in, or measured by, its profits, or pay any indebtedness owed to the Company or any of its Restricted Subsidiaries; provided, that the priority of any preferred stock in receiving dividends or liquidating distributions prior to the payment of dividends or liquidating distributions on common stock shall not be deemed to be a restriction on the ability to make distributions on Capital Stock; (2) make loans or advances to the Company or any of its Restricted Subsidiaries; or (3) transfer any of its assets to the Company or any of its Restricted Subsidiaries. (1) taken as a whole, with respect to such dividend and other payment restrictions than those contained in those agreements on the Issue Date;(2) applicable law or any applicable rule, regulation or order of any court or governmental authority; (3) any instrument governing Indebtedness or Capital Stock, or any other agreement relating to any assets, of a Person acquired by the Company or any of its Restricted Subsidiaries as in effect at the time of such acquisition (except to the extent such restriction was created in contemplation of such acquisition), which encumbrance or restriction is not applicable to any Person, or the assets of any Person, other than the Person, or the assets of the Person, so acquired; provided that, in the case of Indebtedness, such Indebtedness was permitted by the terms of the indenture to be incurred; (4) (a) customary non-assignment provisions in any contract, license or lease and (b) cash, other deposits, or net worth or similar requirements, in each case, imposed by suppliers or landlords under contracts, in the case of each of clauses (a) and (b), entered into in the ordinary course of business and consistent with past practices; (5) purchase money obligations for property acquired in the ordinary course of business that impose restrictions on that property of the nature described in clause (3) of the preceding paragraph; (6) any restriction with respect to a Restricted Subsidiary imposed pursuant to an agreement for the sale or other disposition of all or substantially all of the Capital Stock or assets of such Restricted Subsidiary pending the closing of such sale or other disposition; (7) Permitted Refinancing Indebtedness; provided that the encumbrances or restrictions contained in the agreements governing such Permitted Refinancing Indebtedness are no more restrictive, taken as a whole, than those contained in the agreements governing the Indebtedness being refinanced; (8) Liens securing Indebtedness otherwise permitted to be incurred under the provisions of the covenant described above under the caption “—Liens” that limit the right of the debtor to dispose of the assets subject to such Liens; and (9) provisions with respect to the disposition or distribution of assets or property in joint venture agreements, asset sale agreements, agreements relating to sale and leaseback transactions, stock sale agreements and other similar agreements entered into in the ordinary course of business. (1) either: (a) the Company is the resulting transferee or surviving Person, or (b) the resultant, transferee or surviving Person formed (if other than the Company) is a corporation, limited liability company or limited partnership organized or existing under the laws of the United States, any state of the United States or the District of Columbia; (2) such resultant, transferee or surviving Person assumes all the obligations of the Company under the notes, the indenture and the registration rights agreement pursuant to agreements reasonably satisfactory to the trustee, provided, that unless such resultant, transferee or surviving Person is a corporation, a corporate co-issuer of the notes may be added to the indenture by such supplemental indenture;(3) immediately after such transaction no Default exists; and (4) except in the case of a merger of the Company with or into a Guarantor, or a sale, assignment, transfer, conveyance or other disposition of assets to the Company or a Guarantor, immediately after such transaction after giving pro forma effect thereto and any related financing transactions as if the same had occurred at the beginning of the applicable four-quarter period, either the Company or the resultant, transferee or surviving Person (if other than the Company), would be able to incur at least $1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in the first paragraph of the covenant described above under the caption “—Incurrence of Indebtedness and Issuance of Preferred Stock.” (1) such Affiliate Transaction is on terms that are no less favorable to the Company or the relevant Restricted Subsidiary than those that would have been obtained in a comparable transaction by the Company or such Restricted Subsidiary with an unrelated Person or, if no comparable transaction is available with which to compare such Affiliate Transaction, such Affiliate Transaction is otherwise fair to the Company or the relevant Restricted Subsidiary from a financial point of view, as evidenced by the delivery of the officers’ certificate provided for in clause (2) below; and (2) the Company delivers to the trustee: (a) with respect to any Affiliate Transaction or series of related Affiliate Transactions involving aggregate consideration in excess of $10.0 million but less than $25.0 million, an officers’ certificate certifying that such Affiliate Transaction complies with clause (1) above; and (b) with respect to any Affiliate Transaction or series of related Affiliate Transactions involving aggregate consideration in excess of $25.0 million, a resolution of its Board of Directors set forth in an officers’ certificate certifying that such Affiliate Transaction complies with clause (1) above and that such Affiliate Transaction has been approved by a majority of the disinterested members of its Board of Directors. (1) any employment, equity award, equity option or equity appreciation agreement, plan agreement or similar compensation arrangement, employee benefit plan, officer or director indemnification agreement or any similar arrangement entered into by the Company or any of its Restricted Subsidiaries in the ordinary course of business and consistent with past practices and payments pursuant thereto;
(2) | fees and compensation paid to, and indemnity provided on behalf of, officers, directors, employees or consultants of the Company or any of its Restricted Subsidiaries in their capacity as such, to the extent such fees and compensation are reasonable and customary; |
(3) | loans or advances to employees in the ordinary course of business and consistent with past practices, but in any event not to exceed $1.0 million in the aggregate outstanding at any one time; |
(4) | transactions between or among (i) the Company and one or more of its Restricted Subsidiaries and (ii) any Restricted Subsidiaries; |
(5) | transactions with a Person that is an Affiliate of the Company solely because the Company owns an Equity Interest in, or controls, such Person; |
(6) | sales of Equity Interests (other than Disqualified Stock) to Affiliates of the Company or any of its Restricted Subsidiaries; |
(7) | Restricted Payments that are permitted by the covenant described above under the caption “—Restricted Payments;” and |
(8) | the performance of obligations of the Company or any of its Restricted Subsidiaries under the terms of any agreement to which the Company or any of its Restricted Subsidiaries is a party as of the Issue Date, and any amendments, modifications, supplements, extensions or renewals of those agreements entered into after the Issue Date; provided that, such amendments, modifications, supplements, extensions or renewals do not, in any material respects, adversely affect the rights, taken as a whole, of the holders of the notes as compared to the terms of the agreement in effect on the Issue Date. |
Subsidiary. Upon the release, termination or satisfaction of such Domestic Subsidiary’s guarantee or assumption of such Indebtedness, or as otherwise provided in the indenture, that Restricted Subsidiary’s Subsidiary Guarantee shall automatically be released and terminated. information available to securities analysts and prospective investors upon request. The Company, and to the extent applicable, the Guarantors, will be deemed to have furnished such reports and other information to the trustee and the holders of notes, and, to the extent herein provided, to securities analysts and prospective investors, if it has filed such reports and other information with the SEC using the EDGAR filing system (or any successor filing system), or if such system is not available to the Company, if it has filed such reports and other information on its website, and in each case, such reports and other information are publicly available thereon.(1) all quarterly and annual financial information that would be required to be contained in a filing with the SEC on Forms 10-Q and 10-K if the Company were required to file such Forms, including a “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and, with respect to the annual information only, a report on the annual financial statements by the Company’s independent registered public accounting firm; and (2) all current reports that would be required to be filed with the SEC on Form 8-K if the Company were required to file such reports. 10 K10-K will include a report on the Company’s consolidated financial statements by the Company’s certified independent accountants. If the Company has designated any of its Subsidiaries as Unrestricted Subsidiaries, then the quarterly and annual financial information required by the preceding paragraphs will include a reasonably detailed presentation, either on the face of the financial statements or in the footnotes thereto, and in Management’s Discussion and Analysis of Financial Condition and Results of Operations, of the financial condition and results of operations of the Company and its Restricted Subsidiaries separate from the financial condition and results of operations of the Unrestricted Subsidiaries of the Company.(1) default for 30 days in the payment when due of interest on the notes; (2) default in payment when due of the principal of, or premium, if any, on the notes; (3) failure by the Company or any of its Restricted Subsidiaries to comply with the provisions described under the captions “—Repurchase at the Option of Holders—Change of Control” and “—Certain Covenants—Merger, Consolidation or Sale of Assets,” and such failure continues for 30 days after the Company’s receipt of the written notice of such noncompliance given to it as provided below; (4) failure by the Company or any of its Restricted Subsidiaries to comply with any of the other agreements in the indenture (other than a failure that is subject to clause (1), (2) or (3) above), and such failure continues for 60 days after the Company’s receipt of the written notice of such noncompliance given to it as provided below; (5) default under any mortgage, indenture or instrument under which there may be issued or by which there may be secured or evidenced any Indebtedness for money borrowed by the Company or any of its Restricted Subsidiaries (or the payment of which is guaranteed by the Company or any of its Restricted Subsidiaries) whether such Indebtedness or guarantee now exists, or is created after the Issue Date, if that default: (a) is caused by a failure to pay principal of, or interest or premium, if any, on, such Indebtedness prior to the expiration of the grace period provided in such Indebtedness on the date of such default (a “Payment Default”); or (b) results in the acceleration of such Indebtedness prior to its Stated Maturity, and, in each case, the principal amount of any such Indebtedness, together with the principal amount of any other such Indebtedness under which there has been a Payment Default or the maturity of which has been so accelerated, aggregates $15.0 million or more;(6) failure by the Company or any of its Restricted Subsidiaries to pay final judgments aggregating in excess of $15.0 million (excluding amounts covered by insurance, reimbursement agreements and indemnification agreements), which judgments are not paid, discharged or stayed for a period of 60 days; (7) except as permitted by the indenture, any Subsidiary Guarantee shall be held in any judicial proceeding to be unenforceable or invalid or shall cease for any reason (other than in accordance with the terms of that guarantee and the indenture) to be in full force and effect or any Guarantor shall deny or disaffirm its obligations under its Subsidiary Guarantee (other than by reason of the termination of the indenture or the release of any Subsidiary Guarantee in accordance with the indenture); and (8) certain events of bankruptcy or insolvency described in the indenture with respect to the Company or any of its Significant Subsidiaries or any group of Restricted Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary.
(1) | such holder has previously given the trustee notice that an Event of Default is continuing; |
(2) | holders of at least 25% in aggregate principal amount of the then outstanding notes have requested the trustee to pursue the remedy; |
(3) | such holders have offered the trustee security or indemnity reasonably satisfactory to it against any loss, liability or expense; |
(4) | (4) the trustee has not complied with such request within 60 days after the receipt of the request and the offer of security or indemnity; and |
(5) | (5) holders of a majority in aggregate principal amount of the then outstanding notes have not given the trustee a direction inconsistent with such request within such 60-day period. |
(1) | the rights of holders of outstanding notes to receive payments in respect of the principal of, or interest or premium, if any, on, such notes when such payments are due from the trust referred to below; |
(2) | the Company’s obligations with respect to the notes concerning issuing temporary notes, registration of notes, mutilated, destroyed, lost or stolen notes and the maintenance of an office or |
(3) | the rights, powers, trusts, duties and immunities of the trustee, and the Company’s and the Guarantor’s obligations in connection therewith; and |
(4) | the Legal Defeasance provisions of the indenture. |
(1) | the Company must irrevocably deposit with the trustee, in trust, for the benefit of the holders of the notes, cash in U.S. dollars, non-callable Government Securities, or a combination of cash in U.S. dollars and non-callable Government Securities, in such amounts as will be sufficient, in the opinion of an independent registered public accounting firm, independent investment banking firm of nationally-recognized standing or other comparable financial professional, to pay the principal of, or interest and |
premium, if any, on, the outstanding notes on the Stated Maturity or on the applicable redemption date, as the case may be, and the Company must specify whether the notes are being defeased to maturity or to a particular redemption date; |
(2) | in the case of Legal Defeasance, the Company has delivered to the trustee an opinion of counsel reasonably acceptable to the trustee confirming that: |
(a) | the Company has received from, or there has been published by, the Internal Revenue Service a ruling; or |
(b) | since the Issue Date, there has been a change in the applicable federal income tax law, |
(3) | in the case of Covenant Defeasance, the Company has delivered to the trustee an opinion of counsel reasonably acceptable to the trustee confirming that the holders of the outstanding notes will not recognize income, gain or loss for federal income tax purposes as a result of such Covenant Defeasance and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such Covenant Defeasance had not occurred; |
(4) | no Default or Event of Default has occurred and is continuing on the date of such deposit (other than a Default or Event of Default resulting from the borrowing of funds to be applied to such deposit or the granting of Liens to secure such borrowings or any portion thereof) or insofar as Events of Default from bankruptcy or insolvency events are concerned, at any time in the period ending on the 91st day after the day of deposit; |
(5) | such Legal Defeasance or Covenant Defeasance will not result in a breach of, or constitute a |
(6) | the Company must have delivered to the trustee an opinion of counsel to the effect that after the 91st day following the deposit, the trust funds will not be subject to the effect of any applicable bankruptcy, insolvency, reorganization or similar laws affecting creditors’ rights generally; |
(7) | the Company must have delivered to the trustee an officers’ certificate stating that the deposit was not made by the Company with the intent of preferring the holders of notes over the other creditors of the Company and the Guarantors with the intent of defeating, hindering, delaying or defrauding creditors of the Company, any Guarantor or others; and |
(8) | the Company must have delivered to the trustee an officers’ certificate and an opinion of counsel, each stating that all conditions precedent relating to the Legal Defeasance or the Covenant Defeasance have been complied with. |
(1) either: (a) all such notes theretofore authenticated and delivered, except lost, stolen or destroyed notes that have been replaced or paid and notes for whose payment money has been deposited in trust and thereafter repaid to the Company or discharged from such trust as provided in the indenture, have been delivered to the trustee for cancellation; or
(b) | all notes that have not been delivered to the trustee for cancellation have become due and payable or will become due and payable within one year by reason of the mailing of a notice of redemption or otherwise and, the Company or any Guarantor has irrevocably deposited or caused to be deposited with the trustee as trust funds in trust solely for the benefit of the holders, cash in U.S. dollars, non-callable Government Securities, or a combination of cash in U.S. dollars and non-callable Government Securities, in such amounts as will be sufficient, without consideration of any reinvestment of interest, to pay and discharge the entire Indebtedness on such notes not theretofore delivered to the trustee for cancellation for principal, premium, if any, and accrued interest to the date of maturity or redemption; |
(2) | no Default or Event of Default has occurred and is continuing on the date of the deposit or will occur immediately after giving effect to the deposit and the deposit will not result in a breach of, or constitute a default under, any other material instrument to which the Company or any of its Subsidiaries is a party or by which the Company or any of its Subsidiaries is bound; |
(3) | the Company or any Guarantor has paid or caused to be paid all sums payable by it under the indenture; and |
(4) | the Company has delivered irrevocable instructions to the trustee under the indenture to apply the deposited money toward the payment of the notes at maturity or the redemption date, as the case may be. |
(1) | reduce the percentage in principal amount of such outstanding notes whose holders must consent to an amendment, supplement or waiver; |
(2) | reduce the principal of or change the fixed maturity of any note or alter any of the provisions with respect to the redemption of the notes (other than provisions relating to the covenants described above under the caption “—Repurchase at the Option of Holders”); |
(3) | reduce the rate of or change the time for payment of interest on any note; |
(4) | waive a Default or Event of Default in the payment of principal of, or interest or premium, if any, on, the notes (except a rescission of acceleration of the notes by the holders of at least a majority in aggregate principal amount of the then outstanding notes and a waiver of the payment default that resulted from such acceleration); |
(5) | make any note payable in currency other than that stated in the notes; |
(6) | make any change in the provisions of the indenture relating to waivers of past Defaults or the rights of holders of notes to receive payments of principal of, or interest or premium, if any, on the notes; |
(7) | waive a redemption payment with respect to any note (other than a payment required by one of the covenants described above under the caption “—Repurchase at the Option of Holders”); |
(8) | make any change in the ranking or priority of any note that would adversely affect the noteholder; |
(9) | release any Guarantor from any of its obligations under its Subsidiary Guarantee or the indenture, except in accordance with the terms of the indenture; or |
(10) | make any change in the preceding amendment and waiver provisions. |
(1) | to cure any ambiguity, defect or inconsistency; |
(2) | to provide for uncertificated notes in addition to or in place of certificated notes; |
(3) | to provide for the assumption of the Company’s or any Guarantor’s obligations to holders of notes in the case of a merger or consolidation or sale of all or substantially all of the Company’s or such Guarantor’s assets, including the addition of any required co-issuer of the notes; |
(4) | to make any change that would provide any additional rights or benefits to the holders of notes or that does not adversely affect the legal rights under the indenture of any such holder; |
(5) | to provide for the issuance of additional notes and related Subsidiary Guarantees in accordance with the provisions set forth in the indenture or any related registration rights agreement; |
(6) | to comply with requirements of the SEC in order to effect or maintain the qualification of the indenture under the Trust Indenture Act; |
(7) | to add any Restricted Subsidiary as an additional Guarantor as provided in the indenture or to evidence the succession of another Person to the Company, any Guarantor or any other obligor under the notes pursuant to the indenture, and the assumption by any such successor of the covenants and agreements of the Company, such Guarantor or such obligor contained in the indenture, the notes and in any Subsidiary Guarantee of such Guarantor, including the addition of any required co-issuer of the notes; |
(8) | to release a Guarantor from its obligations under the indenture and its Subsidiary Guarantee pursuant to the indenture; |
(9) | to provide for the acceptance of appointment of a successor trustee as provided in the indenture; |
(10) | to add to the covenants of the Company, any Guarantor or any other obligor under the notes for the benefit of the holders of the note or to surrender any right or power conferred upon the Company or any Guarantor or any other obligor under the notes, as applicable, in the indenture, in the notes or in any Subsidiary Guarantee; |
(11) | to comply with the rules of any applicable securities depositary; and |
(12) | to conform the text of the indenture, notes or Subsidiary Guarantees to any provision of this “Description of Notes” to the extent this “Description of Notes” contains text or provisions that are intended to be set forth verbatim in the indenture, notes or Subsidiary Guarantees; |
security or otherwise. The trustee will be permitted to engage in other transactions; however, if it acquires any conflicting interest as described under the Trust Indenture Act it must eliminate such conflict within 90 days, apply to the SEC for permission to continue or resign.
relationship with a Participant, either directly or indirectly (collectively, the “Indirect Participants”). Persons who are not Participants may beneficially own securities held by or on behalf of DTC only through the Participants or the Indirect Participants. The ownership interests in, and transfers of ownership interests in, each security held by or on behalf of DTC are recorded on the records of the Participants and Indirect Participants.
(1) | upon deposit of the global notes, DTC will credit |
(2) | ownership of these interests in the global notes will be shown on, and the transfer of ownership of these interests will be effected only through, records maintained by DTC (with respect to the |
(1) | any aspect of DTC’s records or any Participant’s or Indirect Participant’s records relating to or payments made on account of beneficial ownership interest in the global notes or for maintaining, supervising or reviewing any of DTC’s records or any Participant’s or Indirect Participant’s records relating to the beneficial ownership interests in the global notes; or |
(2) | any other matter relating to the actions and practices of DTC or any of its Participants or Indirect Participants. |
the responsibility of DTC, the trustee or the Company. Neither the Company nor the trustee will be liable for any delay by DTC or any of its Participants in identifying the beneficial owners of the notes, and the Company and the trustee may conclusively rely on and will be protected in relying on instructions from DTC or its nominee for all purposes.
(1) | DTC |
(a) | notifies the Company that it is unwilling or unable to continue as depositary for the global notes and the Company fails to appoint a successor depositary, or |
(b) | has ceased to be a clearing agency registered under the Exchange Act; |
(2) | the Company, at its option, notifies the trustee in writing that it elects to cause the issuance of the certificated notes; or |
(3) | there has occurred and is continuing an Event of Default with respect to the notes. |
(1) | Indebtedness of any other Person existing at the time such other Person is merged with or into or became a Restricted Subsidiary of such specified Person (regardless of the form of the applicable transaction by which such Person became a Restricted Subsidiary), whether or not such Indebtedness is incurred in connection with, or in contemplation of, such other Person merging with or into, or becoming a Restricted Subsidiary of, such specified Person; and |
(2) | Indebtedness secured by a Lien encumbering any asset acquired by such specified Person, but excluding Indebtedness that is extinguished, retired or repaid in connection with such Person merging with or becoming a Restricted Subsidiary of such specified Person. |
(1) | the sale, lease, conveyance or other disposition (a “transfer”) of any assets or rights by the Company or any Restricted Subsidiary; provided that the sale, conveyance or other disposition of all or substantially all of the assets of the Company and its Restricted Subsidiaries taken as a whole will be governed by |
the provisions of the indenture described above under the caption “—Repurchase at the Option of Holders—Change of Control” and/or the provisions described above under the caption “—Certain Covenants—Merger, Consolidation or Sale of Assets” and not by the provisions of the “Asset Sale” covenant; |
(2) | the issuance of Equity Interests in any of the Company’s Restricted Subsidiaries or the sale of Equity Interests in any of its Subsidiaries (other than directors’ qualifying shares or shares required by applicable law to be held by a Person other than the Company or any of its Restricted |
(3) | an Involuntary Transfer. |
(1) | any single transaction or series of related transactions that involves assets having a fair market value, or receipt by the Company or any of its Restricted Subsidiaries of Net Proceeds, not in excess of $1.0 million; |
(2) | a transfer of assets between or among the Company and its Restricted Subsidiaries; |
(3) | an issuance of Equity Interests by a Restricted Subsidiary to the Company or to another Restricted Subsidiary; |
(4) | the transfer of assets in the ordinary course of business; |
(5) | transfer of damaged, worn-out or obsolete assets that, in the Company’s reasonable judgment, are either (a) no longer used or (b) no longer useful in the business of the Company or its Restricted Subsidiaries; |
(6) | the sale or other disposition of cash or Cash Equivalents; |
(7) | (a) Permitted Investment or (b) Restricted Payment that is permitted by the covenant described above under the caption “—Certain Covenants—Restricted Payments;” |
(8) | any Lien permitted by the Indenture; and |
(9) | any transfer of assets in trade or exchange for assets of comparable Fair Market Value used or usable in any Permitted Business (including, without limitation, the trade or exchange for a controlling interest in another business or all or substantially all of the assets or operating line of a business, in each case, engaged in a Permitted Business or for other non-current assets to be used in a Permitted Business); provided that (A) the Fair Market Value of the assets traded or exchanged by the Company or such Restricted Subsidiary (including any cash or Cash Equivalents to be delivered by the Company or such Restricted Subsidiary) is reasonably equivalent to the Fair Market Value of the assets (together with any cash or Cash Equivalents) to be received by the Company or such Restricted Subsidiary; (B) such trade or exchange, if the Fair Market Value of the related assets exceeded $20 million, is approved by the Board of Directors of the Company; and (C) any cash or Cash Equivalents received by the Company or a Restricted Subsidiary in connection with such trade or exchange (net of any transaction costs of the type deducted under the definition of “Net Proceeds”) shall be treated as Net Proceeds of an Asset Sale and shall be applied in the manner set forth in the covenant described above under the caption “—Repurchase at the Option of Holders—Asset Sales.” |
(1) | a sale and leaseback transaction in which the lease is for a period, including renewal rights, not in excess of one year; |
(2) | a sale and leaseback transaction in which the transfer of the related property is made within 270 days of the acquisition or construction of, or the completion of a material improvement to, such property; |
(3) | a sale and leaseback transaction in which the lease secures or relates to industrial revenue or pollution control bonds; |
(4) | a sale and leaseback transaction in which the transaction is between or among the Company and one or more Restricted Subsidiaries or between or among Restricted Subsidiaries; or |
(5) | a sale and leaseback transaction pursuant to which the Company, within 270 days after the completion of the transfer of the related property, applies toward the retirement of its Indebtedness or the Indebtedness of a Restricted Subsidiary, or to the purchase of other property, the greater of the net proceeds from the transfer of the related property and the Fair Market Value of such property; provided, however, that the amount that must be applied to the retirement of Indebtedness shall be reduced by all fees and expenses associated with the sale and leaseback transaction. |
(1) | with respect to a corporation, the board of directors of the corporation; |
(2) | with respect to a partnership, the Board of Directors of the general partner of the partnership; |
(3) | with respect to a limited liability company, the managing member or members or any controlling committee of managing members thereof; and |
(4) | with respect to any other Person, the board or committee of such Person serving a similar function; |
(1) | in the case of a corporation, corporate stock; |
(2) | in the case of an association or business entity, any and all shares, interests, participations, rights |
(3) | in the case of a partnership or limited liability company, partnership or membership interests (whether general or limited); and |
(4) | any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person, |
(1) | United States dollars; |
(2) | securities issued or directly and fully guaranteed or insured by the United States government or any agency or instrumentality of the United States government (provided that the full faith and credit of the United States is pledged in support of those securities) having maturities of not more than one year from the date of acquisition; |
(3) | certificates of deposit and Eurodollar time deposits with maturities of one year or less from the date of acquisition, bankers’ acceptances with maturities not exceeding one year from the date of acquisition and overnight bank deposits, in each case, with any domestic commercial bank having capital and surplus in excess of $500.0 million and a Thomson BankWatch Rating of “B” or better; |
(4) | repurchase obligations with a term of not more than seven days for underlying securities of the types described in clauses (2) and (3) above entered into with any financial institution meeting the qualifications specified in clause (3) above; |
(5) | commercial paper having the highest rating obtainable from Moody’s Investors Service, Inc. or Standard & Poor’s Rating Services and in each case maturing within one year after the date of acquisition; and |
(6) | money market funds at least 95% of the assets of which constitute Cash Equivalents of the kinds described in clauses (1) through (5) of this definition. |
(1) | the direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the properties or assets of the Company and its Restricted Subsidiaries taken as a whole to any “person” (as that term is used in Sections 13(d) and 14(d) of the Exchange Act); |
(2) | the adoption of a plan by the stockholders of the Company relating to the liquidation or dissolution of the Company other than in a transaction that complies with the provisions under the caption “—Certain Covenants—Merger, Consolidation or Sale of Assets;” |
(3) | the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any “person” (as that term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the Beneficial Owner, directly or indirectly, of more than 50% of the Voting Stock of the Company, measured by voting power rather than number of shares; or |
(4) | the first day on which a majority of the members of the Board of Directors of the Company are not |
(1) | an amount equal to any extraordinary loss, plus any net loss realized by such Person or any of its Subsidiaries in connection with an Asset Sale, to the extent such expenses and losses were deducted in computing such Consolidated Net Income; plus |
(2) | provision for taxes based on income or profits of such Person and its Restricted Subsidiaries for such period, to the extent that such provision for taxes was deducted in computing such Consolidated Net Income; plus |
(3) | the Fixed Charges of such Person and its Restricted Subsidiaries for such period, to the extent that such Fixed Charges were deducted in computing such Consolidated Net Income; plus |
(4) | depreciation and amortization expenses (including amortization of intangibles but excluding amortization of prepaid cash expenses that were paid in a prior period) and other non-cash expenses (excluding any such non-cash expense to the extent that it represents an accrual of or reserve for cash expenses in any future period or amortization of a prepaid cash expense that was paid in a prior period) of such Person and its Restricted Subsidiaries for such period to the extent that such depreciation and amortization expenses and other non-cash expenses were deducted in computing such Consolidated Net Income; plus |
(5) | non-cash items increasing such Consolidated Net Income for such period, other than the accrual of revenue in the ordinary course of business, |
(1) | the Net Income (but not loss) of any Person that is not a Restricted Subsidiary or that is accounted for by the equity method of accounting will be included only to the extent of the amount of dividends or distributions paid in cash to the referent Person or a Restricted Subsidiary; |
(2) | the Net Income of any Restricted Subsidiary will be excluded to the extent that the declaration or payment of dividends or similar distributions by that Restricted Subsidiary of that Net Income is |
(3) | the cumulative effect of a change in accounting principles will be excluded; and |
(4) | notwithstanding clause (1) above, the Net Income of any Unrestricted Subsidiary will be excluded, whether or not distributed to the specified Person or one of its Subsidiaries. |
being made, as the sum of (1) the par or stated value of all of such Person’s outstanding Capital Stock, (2) paid-in capital or capital surplus relating to such Capital Stock and (3) any retained earnings or earned surplus less (A) any accumulated deficit and (B) any amounts attributable to Disqualified Stock.
(1) | was a member of such Board of Directors on the date notes are first issued under the indenture; or |
(2) | was nominated for election or elected to such Board of Directors with the approval of a majority of the Continuing Directors who were members of such Board of Directors at the time of such nomination or election. |
(1) | any Foreign Subsidiary; and |
(2) | any Subsidiary that is an Immaterial Subsidiary. |
(1) | acquisitions that have been made by such Person or any of its Restricted Subsidiaries, including through mergers or consolidations or the acquisition of all or substantially all of the assets of another Person or a business line or division of another Person, and including any related financing transactions, during or subsequent to such reference period and on or prior to the Calculation Date shall be deemed to have occurred on the first day of the reference period and may be made provided they are in accordance with Regulation S-X under the Securities Act of 1933; |
(2) | the Consolidated Cash Flow attributable to discontinued operations, as determined in accordance with GAAP, and operations or businesses (and ownership interests therein) disposed of prior to the Calculation Date, will be excluded; |
(3) | the Fixed Charges attributable to discontinued operations, as determined in accordance with GAAP, and operations or businesses (and ownership interests therein) disposed of prior to the Calculation Date, will be excluded, but only to the extent that the obligations giving rise to such Fixed Charges will not be obligations of the referent Person or any of its Restricted Subsidiaries following the Calculation Date; |
(4) | any Person that is not a Restricted Subsidiary on the Calculation Date will be deemed not to have been a Restricted Subsidiary at any time during such four-quarter period; |
(5) | in making such calculation, the Fixed Charges attributable to interest on any Indebtedness calculated on a pro forma basis and bearing a floating rate of interest will be calculated as if the rate in effect on the Calculation Date had been the applicable rate for the entire period (taking into account any Hedging Obligation applicable to such Indebtedness if such Hedging Obligation has a remaining term as at the Calculation Date in excess of 12 months); and |
(6) | in making such computation, the Fixed Charges of such Person attributable to interest on any Indebtedness under a revolving credit facility calculated on a pro forma basis shall be computed based upon the average daily balance of such Indebtedness during the reference period. |
(1) | the consolidated interest expense of such Person and its Restricted Subsidiaries for such period, whether paid or accrued (including, without limitation or duplication, amortization of debt issuance costs and original issue discount, non-cash interest payments, the interest component of any deferred payment obligations, the interest component of all payments associated with Capital Lease Obligations, imputed interest with respect to Attributable Debt, commissions, discounts and other fees and charges incurred in respect of letter of credit or bankers’ acceptance financings), |
(2) | the consolidated interest of such Person and its Restricted Subsidiaries that was capitalized during such period; plus |
(3) | any interest expense on Indebtedness of another Person that is guaranteed by such Person or one of its Restricted Subsidiaries or secured by a Lien on assets of such Person or one of its Restricted Subsidiaries, whether or not such Guarantee or Lien is called upon; plus |
(4) | all dividends, whether paid or accrued and whether or not in cash, on any series of preferred stock of such Person or any of its Restricted Subsidiaries, other than dividends on Equity Interests payable solely in Equity Interests of the Company (other than Disqualified Stock) or to the Company or a Restricted Subsidiary of the Company. |
(1) | the Company’s Domestic Subsidiaries in existence on the date of the indenture that is not an Excluded Subsidiary; |
(2) | any other Restricted Subsidiary that executes a Subsidiary Guarantee in accordance with the provisions of the indenture; and |
(3) | their respective successors and assigns; |
(1) | interest rate swap agreements, interest rate cap agreements and interest rate collar agreements; |
(2) | foreign exchange contracts and currency protection agreements; |
(3) | any commodity futures contract, commodity option or other similar agreements or arrangements; and |
(4) | other similar agreements or arrangements designed to protect such Person against fluctuations in interest rates, currency exchange rates or commodity prices. |
(1) | assets having an aggregate book value, as of the end of the fiscal year most recently ended, not exceeding $250,000; and |
(2) | Consolidated Net Income not exceeding $250,000 for such fiscal year, |
(1) | the principal of, and premium, if any, with respect to indebtedness of such Person for borrowed money or evidenced by bonds, notes, loans, debentures or similar instruments; |
(2) | reimbursement obligations of such Person for the payment of banker’s acceptances or letters of credit; |
(3) | Capital Lease Obligations of such Person; |
(4) | obligations of such Person for the payment of the |
(5) | Hedging Obligations (the amount of which at any time of determination shall be equal to the termination value of the agreement or arrangement giving rise to such Hedging Obligation that would be payable by such Person at such time); |
(6) | all indebtedness of others of the type referred to in the foregoing clauses (1) through (5) of this definition that are secured by a Lien on any asset of such Person (whether or not such indebtedness is assumed by such Person), but in an amount not to exceed the lesser of the amount of such other Person’s |
(7) | Attributable Debt regarding sale and leaseback transactions; or |
(8) | to the extent not otherwise included, the Guarantee by such Person of any indebtedness of others of the type referred to in the foregoing clauses (1) through (7) of this definition, whether or not such Guarantee is contingent, and whether or not such Guarantee appears on the balance sheet of such Person; |
the date of the indenture and the date the notes are first issued.
(1) | any gain (but not loss), together with any related provision for taxes on such gain (but not loss), realized in connection with: (a) any Asset Sale; or (b) the disposition of any securities by such Person or any of its Restricted Subsidiaries or the extinguishment of any Indebtedness of such Person or any of its Restricted Subsidiaries; and |
(2) | any extraordinary or nonrecurring gain (but not loss), together with any related provision for taxes on such extraordinary or nonrecurring gain (but not loss). |
fees, sales and underwriting commissions and other reasonable costs incurred in preparing such asset for sale), any relocation expenses incurred as a result of the Asset Sale and any related severance and associated costs, expenses and charges of personnel related to sold assets and related operations, (2) taxes paid or reserved as payable as a result of the
(1) | as to which neither the Company nor any of its Restricted Subsidiaries (a) provides credit support of any kind (including any undertaking, agreement or instrument that would constitute Indebtedness, but excluding any pledge of the Equity Interests of an Unrestricted Subsidiary that is an obligor of such Indebtedness); or (b) is directly or indirectly liable as a guarantor or otherwise (other than a pledge of the Equity Interests of an Unrestricted Subsidiary that is an obligor of such Indebtedness); |
(2) | no default with respect to which (including any rights that the holders of such Indebtedness may have to take enforcement action against an Unrestricted Subsidiary) would permit upon notice, lapse of time or both any holder of any other Indebtedness of the Company or any of its Restricted Subsidiaries to declare a default on such other Indebtedness or cause the payment of the Indebtedness to be accelerated or payable prior to its Stated Maturity; and |
(3) | as to which the lenders have been notified in writing that they will not have any recourse to the stock or assets of the Company (other than a pledge of the Equity Interests of an Unrestricted Subsidiary that is an obligor of such Indebtedness) or any of its Restricted Subsidiaries. |
(1) | any Investment in the Company or in a Restricted Subsidiary of the Company; |
(2) | any deposit accounts, Investments in Cash Equivalents and advances and extensions of credit in the nature of accounts receivable arising from the sale or lease of goods or services or the licensing of assets or property and deposits and prepaid expenses, in each case, in the ordinary course of business consistent with past practice; |
(3) | any Investment by the Company or any Subsidiary of the Company in a Person, if as a result of such Investment: |
(a) | such Person becomes a Restricted Subsidiary of the Company; or |
(b) | such Person is merged, consolidated or amalgamated with or into, or transfers or conveys substantially all of its assets to, or is liquidated into, the Company or a Restricted Subsidiary of the Company; |
(4) | any Investment received or made as a result of the receipt of non-cash consideration from an Asset Sale that was made pursuant to, and in compliance with, the covenant described above under the caption “—Repurchase at the Option of Holders—Asset Sales;” |
(5) | any acquisition of assets from another Person solely in exchange for the issuance of Equity Interests (other than Disqualified Stock) of the Company; |
(6) | any Investments received (a) in settlement of debts, claims and disputes owed to the Company or any Restricted Subsidiary that arose out of transactions in the ordinary course of business, (b) in connection with or as a result of a bankruptcy, workout or reorganization or similar arrangement of any Person or (c) as a result of a foreclosure or enforcement of other right or Lien by the Company or any of its Restricted Subsidiaries with respect to any secured Investment in default; |
(7) | Investments in the form of (i) guarantees (including Subsidiary Guarantees) of Indebtedness or (ii) intercompany Indebtedness, in each case, as permitted under the covenant under the caption “—Certain Covenants—Incurrence of Indebtedness and Issuance of Preferred Stock;” |
(8) | Investments arising in connection with Hedging Obligations permitted to be incurred under the covenant described above under the caption “—Certain Covenants—Incurrence of Indebtedness and Issuance of Preferred Stock;” |
(9) | loans made to employees of the Company or any of its Restricted Subsidiaries in the ordinary course of business consistent with past practice and approved by the Board of Directors of the Company in an aggregate amount not to exceed $5 million outstanding at any one time; |
(10) | repurchases or purchases of, or any Investment otherwise in, the notes; |
(11) | Permitted Joint Venture Investments made by the Company or any of its Restricted Subsidiaries, in an aggregate amount (measured on the date each such Investment was made and without giving effect to subsequent changes in value), when taken together with all other Investments made pursuant to this clause (11) (net of return of capital, dividends and interest paid on Investments and sales, liquidations, repayments, payments and redemption of Investments), that does not exceed $20.0 million; |
(12) | Investments pursuant to agreements and obligations of the Company and any Restricted Subsidiary in effect on the Issue Date and any renewals or replacements thereof on terms and conditions not materially less favorable to the Company or such Restricted Subsidiary, as the case may be, than the terms of the Investment being renewed or replaced; |
(13) | to the extent not otherwise permitted in any other clause of this definition, Investments having an aggregate Fair Market Value (measured on the date each such Investment was made and without giving effect to subsequent changes in value), when taken together with all other Investments made pursuant to this clause (13) of (a) $20.0 million and (b) 3.0% of Consolidated Net Tangible Assets; and |
(14) | guarantees received with respect to any Permitted Investment listed above. |
(1) | Liens securing Indebtedness and all other obligations under the Credit Facilities permitted to be incurred by clause (1) of the second paragraph of the covenant entitled “—Certain Covenants— Incurrence of Indebtedness and Issuance of Preferred Stock;” |
(2) | Liens to secure Indebtedness (including Capital Lease Obligations) permitted by clause (4) of the second paragraph of the covenant entitled “—Certain Covenants—Incurrence of Indebtedness and Issuance of Preferred Stock” covering only the assets acquired, constructed, improved, repaired or developed with, or secured by, such Indebtedness; |
(3) | Liens securing Hedging Obligations related to Indebtedness permitted under the indenture; |
(4) | Liens securing the notes and Subsidiary Guarantees related thereto; |
(5) | Liens existing on the Issue Date; |
(6) | Liens in favor of the Company or a Restricted Subsidiary; |
(7) | without duplication, (i) Liens on property of a Person existing at the time such Person is merged with or into or consolidated with the Company or any Restricted Subsidiary of the Company or otherwise becomes a Restricted Subsidiary of the Company and (ii) Liens on property existing at the time of acquisition of the property by the Company or any Restricted Subsidiary of the Company; provided that, such Liens were in existence prior to the contemplation of such merger or consolidation or such Person becoming a Restricted Subsidiary of the Company or such acquisition of such property, as the case may be, and do not extend to any assets other than those of such Person; |
(8) | without duplication, (i) Liens securing Permitted Refinancing Indebtedness incurred to refinance Indebtedness that was previously secured and (ii) extensions, renewals, refinancings and replacements, in whole or part, of any of the Liens described in clauses (2), (5) or (7) of this definition; provided that: |
(a) | any such Lien is limited to all or part of the same property or assets (plus improvements, accessions, after-acquired property, proceeds or distributions in respect thereof) that secured or, under the written arrangements under which the original Lien arose, could secure the Indebtedness being refinanced; and |
(b) | the Indebtedness secured by the new Lien is not increased to any amount greater than the sum of (i) the outstanding principal amount, or, if greater, committed amount, of the original Indebtedness and (ii) an amount necessary to pay any fees and expenses, including premiums, related to such renewal, refunding, refinancing, replacement, defeasance or discharge; |
(9) | Liens or deposits to secure the performance of statutory obligations, surety or appeal bonds, performance bonds or other obligations of a like nature and operating leases, in each case, incurred in the ordinary course of business (exclusive of obligations for the payment of borrowed money or other Indebtedness); |
(10) | banker’s Liens, rights of setoff and other similar Liens existing solely with respect to cash and Cash Equivalents on deposit in one or more of accounts maintained by the Company or any Restricted Subsidiary, in each case granted in the ordinary course of business in favor of the bank or banks with which such accounts are maintained, securing amounts owning to such bank with |
(11) | Liens of landlords, carriers, warehousemen, mechanics, suppliers, materialmen, repairmen and similar other Liens arising in the ordinary course of business or that are imposed by law in the ordinary course of business for sums not delinquent for a period of more than 30 days or are being contested in good faith, if such reserve or other appropriate provision, if any, as shall be required by GAAP shall have been made in respect thereof, all being contested in good faith; |
(12) | Liens incurred or deposits made in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other types of social security legislation (exclusive of obligations for the payment of borrowed money or other Indebtedness); |
(13) | judgment Liens not giving rise to an Event of Default so long as any appropriate legal proceedings which may have been duly initiated for the review of such judgment shall not have been finally terminated or the period within which such proceeding may be initiated shall not have expired; |
(14) | Liens for taxes, assessments or governmental charges or claims that are not yet delinquent or that are being contested in good faith, and, if necessary, by appropriate proceedings promptly instituted and diligently conducted; provided that any reserve or other appropriate provision as is required in conformity with GAAP has been made therefor; |
(15) | any Liens securing industrial development, pollution control or similar bonds; and |
(16) | to the extent not otherwise permitted in any other clause of the definition, Liens of the Company or any Restricted Subsidiary of the Company which do not exceed, at any one time outstanding, the greater of (a) $20.0 million and (b) 3.0% of Consolidated Net Tangible Assets. |
(1) | the principal amount (or accreted value, if applicable) of such Permitted Refinancing Indebtedness does not exceed the principal amount (or accreted value, if applicable) of the Indebtedness extended, refinanced, renewed, replaced, defeased or refunded (plus all accrued interest on the Indebtedness and the amount of all expenses and premiums incurred in connection therewith); |
(2) | such Permitted Refinancing Indebtedness has a final maturity date of, or later than, the final maturity date of, and has a Weighted Average Life to Maturity equal to or greater than the Weighted Average Life to Maturity of, the Indebtedness being extended, refinanced, renewed, replaced, defeased or refunded; |
(3) | if the Indebtedness being extended, refinanced, renewed, replaced, defeased or refunded is subordinated in right of payment to the notes, such Permitted Refinancing Indebtedness is subordinated in right of payment to, the notes on terms at least as favorable to the holders of notes as those contained in the documentation governing the Indebtedness being extended, refinanced, renewed, replaced, defeased or refunded; and |
(4) | such Permitted Refinancing Indebtedness is incurred either by the Company or the Restricted Subsidiary that is the obligor on the Indebtedness being extended, refinanced, renewed, replaced, defeased or refunded. |
(1) | all Indebtedness of such Person, whether outstanding on the Issue Date or thereafter created, incurred or assumed; and |
(2) | all other Obligations of such Person (including fees, charges, expenses, reimbursement obligations and other amounts payable in respect thereof and any interest accruing on or after the filing of any petition in bankruptcy or for reorganization relating to such Person whether or not a claim for post-filing interest is allowed in such proceeding) in respect of Indebtedness described in clause (1) above, |
(1) | any liability for federal, state, local or other taxes owed or owing by such Person; |
(2) | any intercompany Indebtedness of such Person or any of its Subsidiaries to such Person; |
(3) | any trade payables; |
(4) | any portion of any Indebtedness which at the time of incurrence is incurred in breach of the indenture; or |
(5) | any Capital Stock (other than Disqualified Stock). |
(1) | any corporation, association or other business entity of which more than 50% of the total voting power of shares of Capital Stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees of the corporation, association or other business entity is at the time owned or controlled, directly or indirectly, by that Person; and |
(2) | any partnership (a) the sole general partner or the managing general partner of which is such Person or an entity described in clause (1) of this definition and related to such Person or (b) the only general partners of which are that Person or one or more entities described in clause (1) of this definition and related to such Person (or any combination thereof). |
(1) | has no Indebtedness other than Non-Recourse Debt; |
(2) | is not party to any agreement, contract, arrangement or understanding with the Company or any Restricted Subsidiary of the Company unless the terms of any such agreement, contract, arrangement or understanding are no less favorable to the Company or such Restricted Subsidiary than those that might be obtained at the time from Persons who are not Affiliates of the Company; |
(3) | is a Person with respect to which neither the Company nor any of its Restricted Subsidiaries has any direct or indirect obligation (a) to subscribe for additional Equity Interests or (b) to maintain or preserve such Person’s financial condition or to cause such Person to achieve any specified levels of operating results; and |
(4) | has not guaranteed or otherwise directly or indirectly provided credit support for any Indebtedness |
(1) | the sum of the products obtained by multiplying (a) the amount of each then remaining installment, sinking fund, serial maturity or other required payments of principal, including payment at final maturity, in respect of the Indebtedness or redemption or similar payment in respect of such Disqualified Stock or preferred stock, by (b) the number of years (calculated to the nearest one-twelfth) that will elapse between such date and the making of such payment; by |
(2) | the then outstanding principal amount of such Indebtedness. |
you acquire the new notes in the ordinary course of your business;
you have no arrangement or understanding with any person to participate in the distribution (within the meaning of the Securities Act of 1933) of such new notes in violation of the provisions of the Securities Act of 1933; and
you are not our “affiliate” (within the meaning of Rule 405 under the Securities Act of 1933).
in the over-the-counter market;
in negotiated transactions;
through the writing of options on the new notes or a combination of such methods of resale;
at market prices prevailing at the time of resale;
at prices related to such prevailing market prices; or
Pioneer SEC Filing (file no. 001-08182) | Period and/or date filed | |
Annual Report on Form 10-K | Year ended December 31, | |
Quarterly | ||
Definitive Proxy Statement on Schedule 14A | Filed April 11, 2012 | |
Current Reports on Form 8-K | Filed |
9.875% SENIOR NOTES DUE 2018
FOR
$250,000,000175,000,000 REGISTERED
9.875% SENIOR NOTES DUE 2018
PURSUANT TO THE EXCHANGE OFFER AND PROSPECTUS
DATED , 20102012
N.A.
you agree to be bound by the terms of this Letter of Transmittal.
the Issuer who signs such shelf registration statement, each person who controls the Issuer within the meaning of either the Securities Act or the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and each other holder of
FORMING PART OF THE TERMS AND CONDITIONS OF THE EXCHANGE OFFER
OFFERTO EXCHANGE
FOR
$250,000,000OF 9.875% SENIOR NOTESDUE 2018
WHICHHAVEBEENREGISTERED
UNDERTHE SECURITIES ACTOF 1933,ASAMENDED
PROSPECTUS
NOTESDUE 2018
2012
corporation, breach of the person’s duty of loyalty owed to the corporation or an act or omission not committed in good faith that constitutes a breach of a duty owed by the person to the corporation. Indemnification pursuant to Section 8.101 of the TBOC can be made by the corporation only upon a determination made in the manner prescribed by Section 8.103 of the TBOC that indemnification is proper in the circumstances because the party seeking indemnification has met the applicable standard of conduct for such indemnification. faith and in a manner he reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful. Section 145 further provides that a corporation similarly may indemnify any such person serving in any such capacity who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the corporation to procure a judgment in its favor by reason of the fact that he is or was a director, officer, employee or agent of the corporation or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys’ fees) actually and reasonably incurred in connection with the defense or settlement of such action or suit if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the corporation and except that no indemnification shall be made in respect of any claim, issue or matter as to which such person shall have been adjudged to be liable to the corporation unless and only to the extent that the Delaware Court of Chancery or such other court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all of the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which the Delaware Court of Chancery or such other court shall deem proper.Item 20.Indemnification of Directors and Officers.TheOur Amended and Restated Bylaws of the Companyprovide that we will indemnify, and the Bylaws of Pioneer Drilling Services, Ltd. each provide for indemnification of, and advancement ofadvance expenses to, any executive officer or director to the fullest extent permitted by Chapter 8Texas law.TBOC.Under Chapter 8, directors and officers are entitledTBOC, permit corporations to indemnification against reasonable expenses (including attorneys’ fees) whenever they successfully defendindemnify a person who was or is a governing person, officer, employee or agent of such corporation or who serves at the corporation’s request as a representative of another enterprise, organization or employee benefit plan (an “outside enterprise”), who was, is, or is threatened to be named a respondent in a legal proceedings brought against themproceeding by reasonvirtue of such person’s position in the fact that they hold such a position with the company. In addition, the TBOC permits indemnification for judgments, penalties (including excise and similar taxes), fines, settlements and reasonable expenses (including attorney’s fees) actually incurredcorporation or in an outside enterprise, but only if it is determined that the person seeking indemnification acted in good faith and in a manner he or she reasonably believed, to bein the case of conduct in the person’s official capacity, that the conduct was in or, in the case of all other conduct, that the conduct was not opposed to the corporation or outside enterprise’s best interestsinterest, and, in the case of a criminal proceeding, the company and, with respect to criminal proceedings, he or sheperson had no reasonable cause to believe that his or herthe conduct was unlawful; provided, ifunlawful. A person may be indemnified within the above limitations against judgment and expenses that are reasonable and actually incurred by the person is found liable toin connection with the company or liable on the basis that personal benefit was improperly received by him or her,proceeding; however, indemnification is limited to reasonable expenses actually incurred by suchin a proceeding in which the person is found liable to the corporation or is found to have improperly received a personal benefit and mayshall not be made in respect of any proceeding in which the person shall have been found liable for willful or intentional misconduct in the performance of his or her duty to the company.Chapter 8Sections 8.101, 8.105, 8.103, 8.051 and 8.151 of the TBOC and the Company’s Restated Articles of Incorporation, Amended and Restated Bylaws and form of Indemnification Agreement is not intended to be exhaustive and is qualified in their entirety by reference to such statute,statutes, Restated Articles of Incorporation, Amended and Restated Bylaws and form of Indemnification Agreement.II-1II-2Item 21.Exhibits and Financial Statement Schedules.(a) The following documents are filed as exhibits to this Registration Statement, including those exhibits incorporated herein by reference to a prior filing of the Company under the Securities Act of 1933 or the Exchange Act as indicated in parentheses:
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Description | |||
3.1* | Restated Articles of Incorporation of Pioneer Drilling Company (Form 10-K for the year ended December 31, 2008 (File No. 1-8182, Exhibit 3.1)). | ||
3.2* | Amended and Restated Bylaws of Pioneer Drilling Company (Form 8-K dated December 15, 2008 (File No. 1-8182, Exhibit 3.1)). | ||
3.3* | Restated Certificate of Formation Without Further Amendments of Pioneer Drilling Services, Ltd., dated as of August 4, | ||
2010 (Form S-4 filed August 10, 2010 (Reg. No. 333-168728, Exhibit 3.3)). | |||
3.4* | Bylaws of Pioneer Drilling Services, Ltd. | ||
(Form S-4 filed August 10, 2010 (Reg. No. 333-168728, Exhibit 3.4)). | |||
3.5* | Certificate of Incorporation of Pioneer Production Services, Inc., dated as of February 14, | ||
2008 (Form S-4 filed August 10, 2010 (Reg. No. 333-168728, Exhibit 3.5)). | |||
3.6* | Bylaws of Pioneer Production Services, Inc. | ||
(Form S-4 filed August 10, 2010 (Reg. No. 333-168728, Exhibit 3.6)). | |||
3.7* | Certificate of Incorporation of Pioneer Global Holdings, Inc., dated as of May 16, | ||
2007 (Form S-4 filed August 10, 2010 (Reg. No. 333-168728, Exhibit 3.7)). | |||
3.8* | Bylaws of Pioneer Global Holdings, Inc. | ||
(Form S-4 filed August 10, 2010 (Reg. No. 333-168728, Exhibit 3.8)). | |||
3.9* | Restated Certificate of Formation of Pioneer Well Services, LLC, as amended, dated as of August 4, | ||
2010 (Form S-4 filed August 10, 2010 (Reg. No. 333-168728, Exhibit 3.9)). | |||
3.10* | Second Amended and Restated Limited Liability Company Agreement of Pioneer Well Services, LLC, dated as of August 4, | ||
2010 (Form S-4 filed August 10, 2010 (Reg. No. 333-168728, Exhibit 3.10)). | |||
3.11* | Restated Certificate of Incorporation of Pioneer Wireline Services Holdings, Inc., dated as of August 4, | ||
2010 (Form S-4 filed August 10, 2010 (Reg. No. 333-168728, Exhibit 3.11)). | |||
3.12* | Amended and Restated Bylaws of Pioneer Wireline Services Holdings, Inc. | ||
(Form S-4 filed August 10, 2010 (Reg. No. 333-168728, Exhibit 3.12)). | |||
3.13* | Restated Certificate of Formation of Pioneer Wireline Services, LLC, dated as of August 4, | ||
2010 (Form S-4 filed August 10, 2010 (Reg. No. 333-168728, Exhibit 3.13)). | |||
3.14* | Third Amended and Restated Limited Liability Company Agreement of Pioneer Wireline Services, LLC, dated as of August 4, | ||
2010 (Form S-4 filed August 10, 2010 (Reg. No. 333-168728, Exhibit 3.14)). | |||
3.15* | Restated Certificate of Formation of Pioneer Fishing & Rental Services, LLC, dated as of August 4, | ||
2010 (Form S-4 filed August 10, 2010 (Reg. No. 333-168728, Exhibit 3.15)). | |||
3.16* | Second Amended and Restated Limited Liability Company Agreement of Pioneer Fishing & Rental Services, LLC, dated as of August 4, | ||
2010 (Form S-4 filed August 10, 2010 (Reg. No. 333-168728, Exhibit 3.16)). | |||
4.1* | Form of Certificate representing Common Stock of Pioneer Drilling Company (Form S-8 filed November 18, 2003 (Reg. No. 333-110569, Exhibit 4.3)). |
II-3
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4.2* | Indenture, dated March 11, 2010, by and among Pioneer Drilling Company, the subsidiary guarantors party thereto and Wells Fargo Bank, | ||
4.3* | Registration Rights Agreement, dated March 11, 2010, by and among Pioneer Drilling Company, the subsidiary guarantors party thereto and the initial purchasers party thereto (Form 8-K dated March 12, 2010, (File No. 1-8182, Exhibit 4.2)). | ||
4.4* | First Supplemental Indenture, dated November 21, 2011, by and among Pioneer Drilling Company, the subsidiary guarantors party thereto and Wells Fargo Bank, N.A., as trustee (Form 8-K dated November 21, 2011, (File No. 1-8182, Exhibit 4.2)). | ||
4.5* | Registration Rights Agreement, dated November 21, 2011, by and among Pioneer Drilling Company, the subsidiary guarantors party thereto and the initial purchasers party thereto (Form 8-K dated November 21, 2011, (File No. 1-8182, Exhibit 4.3)). | ||
5.1** | Opinion of Fulbright & Jaworski L.L.P. | ||
10.1* | |||
II-4
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Purchase Agreement, dated March 4, 2010, by and among Pioneer Drilling Company, the subsidiary guarantors party thereto and the initial purchasers party thereto (Form 8-K dated March 5, 2010 (File No. 1-8182, Exhibit 10.1)). | ||
10.2* | Purchase Agreement, dated November 15, 2011, by and among Pioneer Drilling Company, the subsidiary guarantors party thereto and the initial purchasers party thereto (Form 8-K dated November 16, 2011 (File No. 1-8182, Exhibit 10.1)). | |
10.3* | Pioneer Drilling Company 2007 Incentive Plan Form of Long-Term Incentive Cash Award Agreement (Form 10-Q | |
10.4* | Pioneer Drilling Company 2007 Incentive Plan Form of Long-Term Incentive Cash Award Agreement (Form 10-Q | |
10.5* | Pioneer Drilling Company 2007 Incentive Plan Form of Long-Term Incentive Restricted Stock Award Agreement (Form 10-Q | |
10.6* | Pioneer Drilling Company 2007 Incentive Plan Form of Restricted Stock Unit Agreement (Form 10-Q | |
10.7*+ | Pioneer Drilling Services, Ltd. Annual Incentive Compensation Plan dated August 5, 2005 (Form 8-K dated August 5, 2005 (File No. 1-8182, Exhibit 10.1)). | |
10.8*+ | Pioneer Drilling Company Amended and Restated Key Executive Severance Plan dated December 10, 2007 (Form 10-Q for the quarter ended March 31, 2008 (File No. 1-8182, Exhibit 10.4)). | |
10.9*+ | Pioneer Drilling Company’s 1995 Stock Plan and form of Stock Option Agreement (Form 10-K for the year ended March 31, 2001 (File No. 1-8182, Exhibit 10.5)). | |
10.10*+ | Pioneer Drilling Company’s 1999 Stock Plan and form of Stock Option Agreement (Form 10-K for the year ended March 31, 2001 (File No. 1-8182, Exhibit 10.7)). | |
10.11*+ | Pioneer Drilling Company 2003 Stock Plan (Form S-8 filed November 18, 2003 (File No. 333-110569, Exhibit 4.4)). | |
10.12*+ | Amended and Restated Pioneer Drilling Company 2007 Incentive Plan (Form 10-Q dated November 3, 2011 ((File No. 1-8182, Exhibit 10.1)). | |
10.13* | Pioneer Drilling Company 2007 Incentive Plan Form of Stock Option Agreement (Form 8-K dated September 4, 2008 (File No. 1-8182, Exhibit 10.1)). | |
10.14* | Pioneer Drilling Company 2007 Incentive Plan Form of Employee Restricted Stock Award Agreement (Form 8-K dated September 4, 2008 (File No. 1-8182, Exhibit 10.2)). | |
10.15*+ | Pioneer Drilling Company 2007 Incentive Plan Form of Non-Employee Director Restricted Stock Award Agreement (Form 8-K dated September 4, 2008 (File No. 1-8182, Exhibit 10.3)). |
10.16*+ | Pioneer Drilling Company Form of Indemnification Agreement (Form 8-K dated August 8, 2007 (File No. 1-8182, Exhibit 10.1)). | |
10.17*+ | Pioneer Drilling Company Employee Relocation Policy Executive Officers—Package A (Form 8-K dated August 8, 2007 (File No. 1-8182, Exhibit 10.3)). | |
10.18* | Amended and Restated Credit Agreement, dated as of June 30, 2011 among Pioneer Drilling Company, the lenders party thereto, and Wells Fargo Bank, N.A., as administrative agent, issuing lender and swing line lender (Form 8-K dated July 5, 2011 (File No. 1-8182, Exhibit 10.1)). | |
10.19*+ | Employment Letter, effective March 1, 2008, from Pioneer Drilling Company to Joseph B. Eustace (Form 8-K dated March 5, 2008 (File No. 1-8182, Exhibit 10.1)). | |
10.20*+ | Confidentiality and Non-Competition Agreement, dated February 29, 2008, by and between Pioneer Drilling Company, Pioneer Production Services, Inc. and Joe Eustace (Form 8-K dated March 5, 2008 (File No. 1-8182, Exhibit 10.2)). | |
10.21*+ | Employment Letter Agreement, effective January 7, 2009, from Pioneer Drilling Company to Lorne E. Phillips (Form 8-K dated January 14, 2009 (File No. 1-8182, Exhibit 10.1)). | |
12.1** | Statement regarding computation of ratio of earnings to fixed charges. | |
21.1** | Subsidiaries of Pioneer Drilling Company. | |
23.1** | Consent of Independent Registered Public Accounting Firm. | |
23.2 | Consent of Fulbright & Jaworski L.L.P. (included in Exhibit 5.1) | |
24.1** | Powers of Attorney (included on signature pages) | |
25.1** | Form T-1 Statement of Eligibility under the Trust Indenture Act of 1939 of Wells Fargo Bank, N.A. to act as trustee under the Indenture. |
II-5
(a) | to include any prospectus required by section 10(a)(3) of the Securities Act of 1933; |
(b) | to reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement; and |
(c) | to include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement. |
II-6
the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:
(a) | any preliminary prospectus or prospectus of the undersigned registrants relating to the offering required to be filed pursuant to Rule 424; |
(b) | any free writing prospectus relating to the offering prepared by or on behalf of such registrant or used or referred to by the undersigned registrants; |
(c) | the portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrants or their securities provided by or on behalf of such registrant; and |
(d) | any other communication that is an offer in the offering made by such registrant to the purchaser. |
II-7
Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of San Antonio, State of Texas, on August 10, 2010.
PIONEER DRILLING COMPANY | |||
By: | /S/ | ||
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Signatures | Title | Date | ||||
/S/ Wm. Stacy Locke | President, Chief Executive Officer and Director (Principal Executive Officer) | |||||
Wm. Stacy Locke | ||||||
/S/ Lorne E. Phillips | Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | |||||
Lorne E. Phillips | ||||||
/S/ Dean A. Burkhardt | Director | |||||
Dean A. Burkhardt | ||||||
/S/ C. John Thompson | Director | |||||
C/ John Thompson | ||||||
/S/ John Michael Rauh | Director | |||||
John Michael Rauh | ||||||
/S/ Scott D. Urban | Director | May 18, 2012 | ||||
II-8
Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of San Antonio, State of Texas, on August 10, 2010.
PIONEER DRILLING SERVICES, LTD. | |||
By: | /S/ | ||
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Signatures | Title | Date | ||||
/S/ Wm. Stacy Locke | President, Chief Executive Officer and Director (Principal Executive Officer) | |||||
Wm. Stacy Locke | ||||||
/S/ Lorne E. Phillips | Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | |||||
Lorne E. Phillips | ||||||
/S/ Franklin C. West | Director | |||||
Franklin C. West | ||||||
/S/ William D. Hibbetts | Director | May 18, 2012 | ||||
II-9
Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of San Antonio, State of Texas, on August 10, 2010.
PIONEER PRODUCTION SERVICES, INC. | |||
By: | /S/ | ||
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Signatures | Title | Date | ||||
/S/ Wm. Stacy Locke | President, Chief Executive Officer and Director (Principal Executive Officer) | |||||
Wm. Stacy Locke | ||||||
/S/ Lorne E. Phillips | Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | |||||
Lorne E. Phillips | ||||||
/S/ William D. Hibbetts | Director | May 18, 2012 | ||||
II-10
Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of San Antonio, State of Texas, on August 10, 2010.
PIONEER GLOBAL HOLDINGS, INC. | |||
By: | /S/ | ||
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Signatures | Title | Date | ||||
/S/ Wm. Stacy Locke | President, Chief Executive Officer and Director (Principal Executive Officer) | |||||
Wm. Stacy Locke | ||||||
/S/ Lorne E. Phillips | Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | |||||
Lorne E. Phillips | ||||||
/S/ William D. Hibbetts | Director | May 18, 2012 | ||||
II-11
Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of San Antonio, State of Texas, on August 10, 2010.
PIONEER WELL SERVICES, LLC | |||
By: | /S/ | ||
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Signatures | Title | Date | ||||
/S/ Wm. Stacy Locke | President, Chief Executive Officer and Director (Principal Executive Officer) | |||||
Wm. Stacy Locke | ||||||
/S/ Lorne E. Phillips | Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | |||||
Lorne E. Phillips | ||||||
/S/ William D. Hibbetts | Director | May 18, 2012 | ||||
II-12
Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of San Antonio, State of Texas, on August 10, 2010.
PIONEER WIRELINE SERVICES HOLDINGS, INC. | |||
By: | /S/ | ||
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Signatures | Title | Date | ||||
/S/ Wm. Stacy Locke | President, Chief Executive Officer and Director (Principal Executive Officer) | |||||
Wm. Stacy Locke | ||||||
/S/ Lorne E. Phillips | Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | |||||
Lorne E. Phillips | ||||||
/S/ William D. Hibbetts | Director | May 18, 2012 | ||||
II-13
Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of San Antonio, State of Texas, on August 10, 2010.
PIONEER WIRELINE SERVICES, LLC | |||
By: | /S/ | ||
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Signatures | Title | Date | ||||
/S/ Wm. Stacy Locke | President, Chief Executive Officer and Director (Principal Executive Officer) | |||||
Wm. Stacy Locke | ||||||
/S/ Lorne E. Phillips | Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | |||||
Lorne E. Phillips | ||||||
/S/ William D. Hibbetts | Director | May 18, 2012 | ||||
II-14
Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of San Antonio, State of Texas, on August 10, 2010.
PIONEER FISHING & RENTAL SERVICES, LLC | |||
By: | /S/ | ||
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Signatures | Title | Date | ||||
/S/ Wm. Stacy Locke | President, Chief Executive Officer and Director (Principal Executive Officer) | |||||
Wm. Stacy Locke | ||||||
/S/ Lorne E. Phillips | Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | |||||
Lorne E. Phillips | ||||||
/S/ William D. Hibbetts | Director | May 18, 2012 | ||||
II-15
ExhibitNumberDescription2.1*Exhibit NumberSecurities Purchase Agreement, dated January 31, 2008, by and among Pioneer Drilling Company, WEDGE Group Incorporated, WEDGE Energy Holdings, L.L.C., WEDGE Oil & Gas Services, L.L.C., Timothy Daley, John Patterson and Patrick Grissom (Form 8-K dated February 1, 2008 (File No. 1-8182, Exhibit 2.1)).2.2*Letter Agreement, dated February 29, 2008, amending the Securities Purchase Agreement, dated January 31, 2008, by and among Pioneer Drilling Company, WEDGE Group Incorporated, WEDGE Energy Holdings, L.L.C., WEDGE Oil & Gas Services, L.L.C., Timothy Daley, John Patterson and Patrick Grissom (Form 8-K dated March 3, 2008 (File No. 1-8182, Exhibit 2.1)).3.1* Restated Articles of Incorporation of Pioneer Drilling Company (Form 10-K for the year ended December 31, 2008 (File No. 1-8182, Exhibit 3.1)). 3.2* Amended and Restated Bylaws of Pioneer Drilling Company (Form 8-K dated December 15, 2008 (File No. 1-8182, Exhibit 3.1)). 3.3* *Restated Certificate of Formation Without Further Amendments of Pioneer Drilling Services, Ltd., dated as of August 4, 2010.2010 (Form S-4 filed August 10, 2010 (Reg. No. 333-168728, Exhibit 3.3)). 3.4* *Bylaws of Pioneer Drilling Services, Ltd. (Form S-4 filed August 10, 2010 (Reg. No. 333-168728, Exhibit 3.4)). 3.5* *Certificate of Incorporation of Pioneer Production Services, Inc., dated as of February 14, 2008.2008 (Form S-4 filed August 10, 2010 (Reg. No. 333-168728, Exhibit 3.5)). 3.6* *Bylaws of Pioneer Production Services, Inc. (Form S-4 filed August 10, 2010 (Reg. No. 333-168728, Exhibit 3.6)). 3.7* *Certificate of Incorporation of Pioneer Global Holdings, Inc., dated as of May 16, 2007.2007 (Form S-4 filed August 10, 2010 (Reg. No. 333-168728, Exhibit 3.7)). 3.8* *Bylaws of Pioneer Global Holdings, Inc. (Form S-4 filed August 10, 2010 (Reg. No. 333-168728, Exhibit 3.8)). 3.9* *Restated Certificate of Formation of Pioneer Well Services, LLC, as amended, dated as of August 4, 2010.2010 (Form S-4 filed August 10, 2010 (Reg. No. 333-168728, Exhibit 3.9)). 3.10* *Second Amended and Restated Limited Liability Company Agreement of Pioneer Well Services, LLC, dated as of August 4, 2010.2010 (Form S-4 filed August 10, 2010 (Reg. No. 333-168728, Exhibit 3.10)). 3.11* *Restated Certificate of Incorporation of Pioneer Wireline Services Holdings, Inc., dated as of August 4, 2010.2010 (Form S-4 filed August 10, 2010 (Reg. No. 333-168728, Exhibit 3.11)). 3.12* *Amended and Restated Bylaws of Pioneer Wireline Services Holdings, Inc. (Form S-4 filed August 10, 2010 (Reg. No. 333-168728, Exhibit 3.12)). 3.13* *Restated Certificate of Formation of Pioneer Wireline Services, LLC, dated as of August 4, 2010.2010 (Form S-4 filed August 10, 2010 (Reg. No. 333-168728, Exhibit 3.13)). 3.14* *Third Amended and Restated Limited Liability Company Agreement of Pioneer Wireline Services, LLC, dated as of August 4, 2010.2010 (Form S-4 filed August 10, 2010 (Reg. No. 333-168728, Exhibit 3.14)). 3.15* *Restated Certificate of Formation of Pioneer Fishing & Rental Services, LLC, dated as of August 4, 2010.2010 (Form S-4 filed August 10, 2010 (Reg. No. 333-168728, Exhibit 3.15)). 3.16* *Second Amended and Restated Limited Liability Company Agreement of Pioneer Fishing & Rental Services, LLC, dated as of August 4, 2010.2010 (Form S-4 filed August 10, 2010 (Reg. No. 333-168728, Exhibit 3.16)). 4.1* Form of Certificate representing Common Stock of Pioneer Drilling Company (Form S-8 filed November 18, 2003 (Reg. No. 333-110569, Exhibit 4.3)). 4.2* Indenture, dated March 11, 2010, by and among Pioneer Drilling Company, the subsidiary guarantors party thereto and Wells Fargo Bank, National Association,N.A., as trustee (Form 8-K dated March 12, 2010, (File No. 1-8182, Exhibit 4.1)).II-16ExhibitNumberDescription4.3* Registration Rights Agreement, dated March 11, 2010, by and among Pioneer Drilling Company, the subsidiary guarantors party thereto and the initial purchasers party thereto (Form 8-K dated March 12, 2010, (File No. 1-8182, Exhibit 4.2)). 4.4* First Supplemental Indenture, dated November 21, 2011, by and among Pioneer Drilling Company, the subsidiary guarantors party thereto and Wells Fargo Bank, N.A., as trustee (Form 8-K dated November 21, 2011, (File No. 1-8182, Exhibit 4.2)). 4.5* Registration Rights Agreement, dated November 21, 2011, by and among Pioneer Drilling Company, the subsidiary guarantors party thereto and the initial purchasers party thereto (Form 8-K dated November 21, 2011, (File No. 1-8182, Exhibit 4.3)). 5.1** Opinion of Fulbright & Jaworski L.L.P. 8.1**Opinion of Fulbright & Jaworski L.L.P. relating to tax matters (included in Exhibit 5.1)10.1* +Pioneer Drilling Services, Ltd. Annual Incentive Compensation Plan dated August 5, 2005 (Form 8-K dated August 5, 2005 (File No. 1-8182, Exhibit 10.1)).10.2*+Pioneer Drilling Company Amended and Restated Key Executive Severance Plan dated December 10, 2007 (Form 10-Q for the quarter ended March 31, 2008 (File No. 1-8182, Exhibit 10.4)).10.3*+Pioneer Drilling Company’s 1995 Stock Plan and form of Stock Option Agreement (Form 10-K for the year ended March 31, 2001 (File No. 1-8182, Exhibit 10.5)).10.4*+Pioneer Drilling Company’s 1999 Stock Plan and form of Stock Option Agreement (Form 10-K for the year ended March 31, 2001 (File No. 1-8182, Exhibit 10.7)).10.5*+Pioneer Drilling Company 2003 Stock Plan (Form S-8 filed November 18, 2003 (File No. 333-110569, Exhibit 4.4)).10.6*+Amended and Restated Pioneer Drilling Company 2007 Incentive Plan adopted May 15, 2009 (Definitive Proxy Statement on Schedule 14A, filed April 10, 2009 (File No. 1-8182, Appendix A)).10.7*+Pioneer Drilling Company Form of Indemnification Agreement (Form 8-K dated August 8, 2007 (File No. 1-8182, Exhibit 10.1)).10.8*+Pioneer Drilling Company Employee Relocation Policy Executive Officers—Package A (Form 8-K dated August 8, 2007 (File No. 1-8182, Exhibit 10.3)).10.9*Credit Agreement, dated February 29, 2008, among Pioneer Drilling Company, as Borrower, and Wells Fargo Bank, N.A., as administrative agent, issuing lender, swing line lender and co-lead arranger, Fortis Bank SA/NV, New York Branch, as co-lead arranger, and each of the other parties listed therein (Form 8-K dated March 3, 2008 (File No. 1-8182, Exhibit 10.1)).10.10*First Amendment to Credit Agreement, dated as of October 5, 2009, among Pioneer Drilling Company, the lenders party thereto, and Wells Fargo Bank, N.A., as administrative agent, issuing lender and swing line lender (Form 8-K dated October 6, 2009 (File No. 1-8182, Exhibit 10.1))10.11*Waiver Agreement, dated as of June 9, 2008, among Pioneer Drilling Company, the guarantors party thereto, Wells Fargo Bank, N.A., as administrative agent, issuing lender and swing line lender, and each of the other financial institutions party thereto (Form 8-K dated June 11, 2008 (File No. 1-8182, Exhibit 10.1)).10.12*Second Amendment to Credit Agreement, dated as of February 23, 2010, among Pioneer Drilling Company, the lenders party thereto, and Wells Fargo Bank, N.A., as administrative agent, issuing lender and swing line lender (Form 8-K dated February 23, 2010 (File No. 1-8182, Exhibit 10.1)).10.13*+Employment Letter, effective March 1, 2008, from Pioneer Drilling Company to Joseph B. Eustace (Form 8-K dated March 5, 2008 (File No. 1-8182, Exhibit 10.1)).10.14*+Confidentiality and Non-Competition Agreement, dated February 29, 2008, by and between Pioneer Drilling Company, Pioneer Production Services, Inc. and Joe Eustace (Form 8-K dated March 5, 2008 (File No. 1-8182, Exhibit 10.2)).10.15*Agreement between Joyce M. Schuldt and Pioneer Drilling Company, dated August 20, 2008 (Form 8-K dated August 21, 2008 (File No. 1-8182, Exhibit 10.1)).II-17ExhibitNumberDescription10.16*Pioneer Drilling Company 2007 Incentive Plan Form of Employee Restricted Stock Award Agreement (Form 8-K dated September 4, 2008 (File No. 1-8182, Exhibit 10.2)).10.17*Pioneer Drilling Company 2007 Incentive Plan Form of Non-Employee Director Restricted Stock Award Agreement (Form 8-K dated September 4, 2008 (File No. 1-8182, Exhibit 10.3)).10.18*+Pioneer Drilling Company 2007 Incentive Plan Form of Non-Employee Director Restricted Stock Award Agreement (Form 8-K dated September 4, 2008 (File No. 1-8182, Exhibit 10.3)).10.19*+Employment Letter Agreement, effective January 7, 2009, from Pioneer Drilling Company to Lorne E. Phillips (Form 8-K dated January 14, 2009 (File No. 1-8182, Exhibit 10.1)).10.20*Purchase Agreement, dated March 4, 2010, by and among Pioneer Drilling Company, the subsidiary guarantors party thereto and the initial purchasers party thereto (Form 8-K dated March 5, 2010 (File No. 1-8182, Exhibit 10.1)). 10.2* Purchase Agreement, dated November 15, 2011, by and among Pioneer Drilling Company, the subsidiary guarantors party thereto and the initial purchasers party thereto (Form 8-K dated November 16, 2011 (File No. 1-8182, Exhibit 10.1)). 10.21*10.3* Pioneer Drilling Company 2007 Incentive Plan Form of Long-Term Incentive Cash Award Agreement (Form 10-Q for the quarter ended June 30,dated August 5, 2010 (File No. 1-8182, Exhibit 10.1)).10.22*10.4* Pioneer Drilling Company 2007 Incentive Plan Form of Long-Term Incentive Cash Award Agreement (Form 10-Q for the quarter ended June 30,dated August 5, 2010 (File No. 1-8182, Exhibit 10.2)).10.23*10.5* Pioneer Drilling Company 2007 Incentive Plan Form of Long-Term Incentive Restricted Stock Award Agreement (Form 10-Q for the quarter ended June 30,dated August 5, 2010 (File No. 1-8182, Exhibit 10.3)).12.24*10.6* Pioneer Drilling Company 2007 Incentive Plan Form of Restricted Stock Unit Agreement (Form 10-Q for the quarter ended June 30,dated August 5, 2010 (File No. 1-8182, Exhibit 10.4)).10.7*+ Pioneer Drilling Services, Ltd. Annual Incentive Compensation Plan dated August 5, 2005 (Form 8-K dated August 5, 2005 (File No. 1-8182, Exhibit 10.1)). 10.8*+ Pioneer Drilling Company Amended and Restated Key Executive Severance Plan dated December 10, 2007 (Form 10-Q for the quarter ended March 31, 2008 (File No. 1-8182, Exhibit 10.4)). 10.9*+ Pioneer Drilling Company’s 1995 Stock Plan and form of Stock Option Agreement (Form 10-K for the year ended March 31, 2001 (File No. 1-8182, Exhibit 10.5)). 10.10*+ Pioneer Drilling Company’s 1999 Stock Plan and form of Stock Option Agreement (Form 10-K for the year ended March 31, 2001 (File No. 1-8182, Exhibit 10.7)). 10.11*+ Pioneer Drilling Company 2003 Stock Plan (Form S-8 filed November 18, 2003 (File No. 333-110569, Exhibit 4.4)). 10.12*+ Amended and Restated Pioneer Drilling Company 2007 Incentive Plan (Form 10-Q dated November 3, 2011 ((File No. 1-8182, Exhibit 10.1)). 10.13* Pioneer Drilling Company 2007 Incentive Plan Form of Stock Option Agreement (Form 8-K dated September 4, 2008 (File No. 1-8182, Exhibit 10.1)). 10.14* Pioneer Drilling Company 2007 Incentive Plan Form of Employee Restricted Stock Award Agreement (Form 8-K dated September 4, 2008 (File No. 1-8182, Exhibit 10.2)). 10.15*+ Pioneer Drilling Company 2007 Incentive Plan Form of Non-Employee Director Restricted Stock Award Agreement (Form 8-K dated September 4, 2008 (File No. 1-8182, Exhibit 10.3)). 10.16*+ Pioneer Drilling Company Form of Indemnification Agreement (Form 8-K dated August 8, 2007 (File No. 1-8182, Exhibit 10.1)). 10.17*+ Pioneer Drilling Company Employee Relocation Policy Executive Officers—Package A (Form 8-K dated August 8, 2007 (File No. 1-8182, Exhibit 10.3)). 10.18* Amended and Restated Credit Agreement, dated as of June 30, 2011 among Pioneer Drilling Company, the lenders party thereto, and Wells Fargo Bank, N.A., as administrative agent, issuing lender and swing line lender (Form 8-K dated July 5, 2011 (File No. 1-8182, Exhibit 10.1)). 10.19*+ Employment Letter, effective March 1, 2008, from Pioneer Drilling Company to Joseph B. Eustace (Form 8-K dated March 5, 2008 (File No. 1-8182, Exhibit 10.1)). 10.20*+ Confidentiality and Non-Competition Agreement, dated February 29, 2008, by and between Pioneer Drilling Company, Pioneer Production Services, Inc. and Joe Eustace (Form 8-K dated March 5, 2008 (File No. 1-8182, Exhibit 10.2)). 10.21*+ Employment Letter Agreement, effective January 7, 2009, from Pioneer Drilling Company to Lorne E. Phillips (Form 8-K dated January 14, 2009 (File No. 1-8182, Exhibit 10.1)). 12.1** Statement regarding computation of ratio of earnings to fixed charges. 21.1** Subsidiaries of Pioneer Drilling Company. 23.1** Consent of Independent Registered Public Accounting Firm.23.2**Consent of Fulbright & Jaworski L.L.P. (included in Exhibit 5.1) 23.2** Consent of Independent Registered Public Accounting Firm. 24.1** Powers of Attorney (included on signature pages) 25.1** Form T-1 Statement of Eligibility under the Trust Indenture Act of 1939 of Wells Fargo Bank, N.A. to act as trustee under the Indenture. *Incorporated by reference to the filing indicated.**Filed herewith.+Management contract or compensatory arrangement.II-18
* Incorporated by reference to the filing indicated.
**Filed herewith.
+ Management contract or compensatory arrangement.