Business
Precision Trust conversion documentation being mailed
Precision Trust conversion documentation being mailed.
About this update from Precision Drilling Corporation
[{"type":"text","content":"\n\n\n\n\nCALGARY, Oct. 4 /CNW/ - Precision Drilling Corporation (\"Precision\")\nannounced today the mailing to securityholders of the Notice of Special\nMeeting of Securityholders and Information Circular with respect to the Plan\nof Arrangement for the reorganization of Precision into Precision Drilling\nTrust (the \"Trust\"). Copies of this documentation have been submitted for\nposting on SEDAR (www.sedar.com). The special meeting to consider the\nconversion is scheduled to take place on October 31, 2005 at 10:00 a.m.\n(Calgary time) at the Metropolitan Conference Centre, Royal Room, 333 - 4th\nAvenue S.W., Calgary, Alberta.\nPursuant to the reorganization, shareholders will be entitled to receive\nin exchange for each common share held (i) one unit of the Trust (\"Trust\nUnits\"); (ii) their pro-rata share of the 26 million common shares of\nWeatherford International Ltd. owned by Precision (\"Weatherford Shares\"); and\n(iii) their pro-rata share of up to $850 million of cash in aggregate. The\nWeatherford Shares will not be subject to any resale restrictions, however,\nPrecision will not be able to complete the reorganization or transfer the\nWeatherford Shares until a Registration Statement to be filed by Weatherford\nis declared effective by the U.S. Securities and Exchange Commission. The\nTrust will own Precision's existing business and will make regular monthly\ndistributions to holders of the Trust Units. Based on current business\nconditions, it is anticipated that the board of Trustees of the Trust will set\nthe initial regular distributions to the Trust's unitholders at approximately\n$0.24 per Trust Unit per month with the first such payment expected to be made\nin the month following the effective date of the reorganization.\nThe actual amount distributed will be dependent on various economic\nfactors and is at the discretion of the Board of Trustees. The anticipated\ndistribution policy targets the use of approximately 70% of available cash for\ndistribution to Trust Unitholders. Based upon current economic factors and the\nsize of the Trust's capital budget, it is expected that the remaining\napproximately 30% of cash available for distribution will fund the Trust's\nannual capital expenditure program.\n\nCertain statements contained in this press release may contain words such\nas \"anticipate\", \"could\",...