Precision Drilling Closes US$650M Senior Notes Offering and New US$550M Credit Facility

On November 17, 2010, Precision Drilling Corporation (“Precision”) closed a private placement offering of US$650 million aggregate principal amount of 6.625 per cent senior unsecured notes due 2020. In conjunction with the closing, Precision terminated its existing credit facilities and entered into a new US$550 million senior secured revolving credit facility expiring in 2013. Precision is a leading provider of safe, high-performance energy services to the North American oil and gas industry.

The initial purchasers in the private placement were Credit Suisse, RBC Capital Markets, BofA Merrill Lynch, Morgan Stanley, TD Securities, Deutsche Bank Securities, HSBC and Wells Fargo Securities.

Precision was represented by Joanne Alexander, Vice President, General Counsel and Corporate Secretary of Precision and in Canada by Bennett Jones LLP with a team led by John Kousinioris and Philip Backman that included John Piasta and Kahlan Mills (securities) and David Lennox, Karen Dawson, Ryan Schindel and Patrick Trumpy (banking); and in the United States by Simpson Thacher & Bartlett LLP with a team that included Risë Norman, Jonathan Ozner and Gian-Andrea Caprez (capital markets); Robert Holo, Jonathan Cantor and Chang Won Choi (tax); Timothy Mulvihill and Noreen Lavan (environmental) and Gregory Grogan and Wonda Quinn (executive compensation and employee benefits).

Shearman & Sterling LLP represented the initial purchasers in the United States with a team consisting of Christopher Cummings, Stephen Centa, Tina Li and Sonja Sun and Laurence Crouch and Anil Kalia (tax). Burnet, Duckworth & Palmer LLP acted as Canadian counsel to the initial purchasers and the lenders under the new senior secured revolving credit facility with a team consisting of Patricia Fehr, Kathy Pybus and Simina Ionescu-Mocanu (banking) and Shannon Gangl (securities).