Extension of maturity on Gibs

RNS Number : 7140X

Hunting PLC

10 December 2010

 



For Immediate Release

10 December 2010

Hunting PLC

("Hunting" or "the Company")

Extension of maturity date on Gibson Energy warrant

Hunting PLC (LSE: HTG), the international energy services group today provides an update on arrangements which were agreed when the Company disposed of Gibson Energy to Gibson Acquisition ULC (the Purchaser), a company formed for the purpose of the disposal, and ultimately owned by Riverstone/Carlyle Global Energy and Power Funds, a group of energy focussed private equity funds managed by Riverstone.

On the sale of Gibson Energy, which completed on 12 December 2008, the Company agreed to defer payment of C$100 million of the consideration in return for receipt of a Warrant that was issued to the Company.  The Warrant carries an annual dividend entitlement that is cumulative and compounding at a rate of 12% and entitles the holder to Preferred Equity Shares (Preferred Equity) in the parent company of the Purchaser of Gibson Energy on the exercise of the Warrant.  Under the original agreement, on 13 December 2010 the Preferred Equity converts into a separate class of Common Equity and ceases its entitlement to a dividend.

At the request of the Purchaser, the Company has today agreed to extend the terms of the Warrant whereby the Warrant will now remain in place and continue to carry an annual dividend entitlement that is cumulative and compounding. The Company has considered its options under the Warrant and reviewed the Gibson Energy financials and concluded it is comfortable in agreeing to this extension request.

The rate of dividend entitlement on the Warrant will increase to 13% from 13 December 2010 and will run until 1 September 2011.  If the Warrant remains unpaid at 1 September 2011, C$10 million will be added to the value of the Warrant plus the dividend entitlement accrued to that date.  All other terms of the Warrant are unchanged.

The Warrant will continue to be carried in Hunting's balance sheet at its fair value which is currently estimated to equal the value it was held at 30 June 2010 of £31.5 million.

For further information please visit www.huntingplc.com or contact:

Hunting PLC Dennis Proctor, Chief Executive Peter Rose, Finance Director	Tel: [phone] Tel: [phone]
Buchanan Communications Richard Darby Jeremy Garcia	Tel: [phone]

Notes to Editors:

About Hunting PLC

Hunting PLC is an international energy services provider to the world's leading upstream oil and gas companies. Established in 1874, it is a fully listed public company traded on the London Stock Exchange. The Company maintains a corporate office in Houston and is headquartered in London. As well as the United Kingdom, the Company has principal operations in Canada, China, Hong Kong, Indonesia, Mexico, Netherlands, Singapore, United Arab Emirates and the United States of America.

 

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