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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Big Dog who wrote (42832)	4/21/1999 9:27:00 AM
From: paul feldman	Read Replies (2) \| Respond to of 95453

Any thoughts on this buyout?[ Business \| US Market \| By Industry \| IPO \| AP \| S&P \| International \| PRNews \| BizWire ] -------------------------------------------------------------------------------- Related Quotes SESI 0 +0 delayed 20 mins - disclaimer Tuesday April 20, 9:32 pm Eastern Time Company Press Release SOURCE: Superior Energy Services, Inc. Superior Energy and Cardinal Announce Planned Merger HARVEY, La., April 20 /PRNewswire/ -- Superior Energy Services, Inc. (Nasdaq: SESI - news) announced today the execution of a definitive agreement to acquire Cardinal Holding Corporation in a stock transaction valued at $197 million. Under the terms of the agreement, Superior will issue approximately 30 million shares to the current shareholders of Cardinal (led by the private equity firm First Reserve Corporation) which will represent approximately 51 percent of the combined post-transaction equity. To effect the transaction, Cardinal's shareholders will contribute $45 million of equity to the business. Additionally, the combined company will refinance its debt into a long-term, largely interest-only debt facility. The transaction is scheduled to close in the third quarter of this year and is subject to Superior shareholder and customary regulatory approvals. Commenting on the transaction, Terence E. Hall, Superior's Chief Executive Officer stated, ''The combination with Cardinal creates a uniquely-positioned, fully integrated production services company in the Gulf of Mexico. The addition of Cardinal's liftboat fleet and related well servicing operations enables us to continue our strategy of providing a single source well servicing solution to oil and gas operators. The combined entity will be the Gulf of Mexico market leader in liftboat rentals, plug and abandonment services and mechanical wireline services. Additionally, the company will continue to have a significant position in oilfield tool rentals, and potential growth opportunities in the coiled tubing and electric wireline markets. The merger more than doubles the size of Superior, and is projected to be neutral to earnings.'' Mr. Hall will be the Chief Executive Officer of the combined entity. Cardinal provides liftboat rentals and well servicing activities primarily to major and independent oil and gas companies in the Gulf of Mexico. Cardinal operates the largest fleet of liftboats and is the market leader in Gulf of Mexico mechanical wireline services. Additionally, Cardinal provides coiled tubing, electric wireline, plug and abandonment, and pumping and stimulation services. Cardinal is headquartered in New Iberia, LA. Superior Energy Services, Inc. provides a broad range of specialized oilfield services and equipment in the Gulf of Mexico. These services and equipment include the rental of specialized oilfield equipment, oil and gas well plug and abandonment services, electric and mechanical wireline services, the manufacture, sale and rental of drilling instrumentation and the manufacture and sale of oil spill containment equipment. Superior is headquartered in Harvey, LA. This news release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995. Although the company believes that these statements are based upon reasonable assumptions, the company can give no assurance that its expectations will be achieved. Actual results may differ materially due to various risks and uncertainties which are outside the control of the company, such as market prices of oil and gas, the volatility of such prices, governmental regulation and trade restrictions, worldwide economic activity and political stability in major oil producing areas. SOURCE: Superior Energy Services, Inc. -------------------------------------------------------------------------------- More Quotes and News: Superior Energy Services Inc (Nasdaq:SESI - news) Related News Categories: oil/energy -------------------------------------------------------------------------------- Help -------------------------------------------------------------------------------- Copyright © 1999 PRNewswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. See our Important Disclaimers and Legal Information.