HOUSTON, Feb. 17, 2017 /PRNewswire/ -- Sidewinder Drilling ("Sidewinder" or the "Company") today announced the completion of its recapitalization efforts. Sidewinder is now a financially stronger company, having reduced debt by approximately $185 million, reduced annual interest expense by approximately $22 million, and raised substantial incremental liquidity.
The recapitalization positions Sidewinder to better serve its stakeholders, including customers and its employees, as the oil and gas sector recovers. The additional capital will be used, in part, to fund working capital requirements as rigs are reactivated and to continue investing in the Company's rig upgrade program. Sidewinder's daily operations, including work with its valued customers and vendors, will continue without interruption, and existing management will remain in place.
Chief Executive Officer Jon Cole said, "Over the past several months, we have worked diligently with our existing stakeholders and advisors to evaluate a range of strategic alternatives to best improve our capital structure. We are excited to have reached this agreement with our lenders. Moreover, Sidewinder is well positioned to maximize long-term value to our stakeholders while delivering operating excellence and superior service to our customers."
About Sidewinder Drilling
Headquartered in Houston, Texas, Sidewinder was founded in 2011 by the Company's management team. The Company was formed to build, own and operate premium land drilling rigs and to provide contract drilling services for exploration and production ("E&P") companies targeting unconventional resource plays in North America. Through acquisitions and construction of rigs, Sidewinder has built a contract land drilling company with a large scale, modern asset base focused on delivering the high performance drilling services required by operators seeking to efficiently and safely develop unconventional oil and gas resources.
Sidewinder's long-term strategy is to capitalize on the activity in unconventional resource plays by expanding the Company's existing customer base and by operating in all phases of field development, from exploration and delineation drilling to full-scale commercial development. Sidewinder is dedicated to growth and stability and, therefore, intends to selectively expand its drilling fleet of premium rigs through rig upgrades, new construction and strategic acquisitions.
Jon Cole, Chief Executive Officer
Anthony Gallegos, President & CFO
Telephone: (832) 320 7600
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