Independence Contract Drilling, Sidewinder Drilling to merge

|About: Independence Contract Drilling (ICD)|By:, SA News Editor

Independence Contract Drilling (NYSE:ICD) and Sidewinder Drilling agree to an all-stock merger, which will will more than double the size of ICD's pad-optimal rig fleet to 34 rigs.

Sidewinder unitholders will receive ~49% of ICD's total outstanding shares in the deal; ICD will assume $50M of debt.

ICD expects to achieve more than $8M in synergies and believes the acquisition will be accretive to earnings per share, EBITDA per share and cash flow per share.

ICD says it has received binding commitments for a $130M secured five-year non-amortizing term loan and a $40M revolving credit facility, both to be entered into at the deal closing.

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