Independence Contract Drilling, Inc. (NYSE: ICD) and Sidewinder Drilling, LLC have jointly announced a merger agreement for ICD to acquire all outstanding Sidewinder equity interests.
The acquisition allows ICD to more than double its fleet of rigs to 34, following upgrades to five of Sidewinder’s rigs.
In conjunction with this acquisition ICD has received binding commitments for a $130 million, secured, five-year-non-amortizing term loan and a $40-million revolving credit facility, which will be entered into upon closing of the acquisition.
The combined board of directors will consist of four existing ICD board members, including ICD Chairman Thomas R. Bates, as well as two members appointed by the controlling owners of Sidewinder.
The new management team will be led by Sidewinder President & CEO Anthony Gallegos and ICD CFO Philip Choyce. Gallegos will serve as a director of the combined company.
The deal is expected to close early on in 4Q 2018.
The Oil and Gas Conference®
Independence Contract Drilling is presenting at EnerCom’s The Oil & Gas Conference® at the Denver Downtown Westin Hotel, Denver, Colo. Aug. 19-23, 2018. EnerCom expects to have more than 80 presenting oil and gas companies and more than 2000 financial professionals attending this year’s conference.
To learn more about the conference and presenter schedule please visit the conference website here.
