Exhibit 99.1
ALLIS-CHALMERS ENERGY INC.
| | | | | |
PRESS RELEASE | | Contact: | | Victor M. Perez, CFO |
| | | | | Allis-Chalmers Energy |
| | | | | 713-369-0550 |
FOR IMMEDIATE RELEASE | | | | |
| | | | | Lisa Elliott, Sr. VP |
| | | | | DRG&E/ 713-529-6600 |
Allis-Chalmers Announces Private Placement of Senior Notes
Houston, Texas — January 3, 2007— Allis-Chalmers Energy Inc. (AMEX: ALY) announced today that it intends to offer, subject to market and other conditions, $225 million aggregate principal amount of its senior notes due 2017 in a private placement. Allis-Chalmers plans to use the net proceeds of this offering to repay a portion of the debt outstanding under its $300 million bridge loan facility, which was incurred to finance Allis-Chalmers’ recent acquisition of substantially all the assets of Oil & Gas Rental Services, Inc.
The notes will be offered to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, and outside the United States to persons other than U.S. persons, in reliance on Regulation S. The offer and sale of the notes will not be registered under the Securities Act of 1933, and the notes may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act of 1933 and applicable state securities laws.
This announcement does not constitute an offer to sell, or the solicitation of an offer to buy, any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements reflect Allis-Chalmers’ current views with respect to future events, based on what it believes are reasonable assumptions. No assurance can be given, however, that these events will occur. These statements are subject to risks and uncertainties that could cause actual results to differ materially. Information about the risks and uncertainties that may affect Allis-Chalmers are set forth in Allis-Chalmers’ most recent filings on Form 10-K (including without limitation in the “Risk Factors” section), and in Allis-Chalmers’ other SEC filings and publicly available documents.
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5075 Westheimer, Suite 890, Houston, TX 77056
713-369-0550 Fax: 713-369-0555
