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Nov. 16, 2011 /PRNewswire/ -- Pioneer Drilling Company (NYSE Amex: PDC) announced today that it has priced a private offering (the "Offering") to eligible purchasers of an additional $175 million in aggregate principal amount of 9.875% senior unsecured notes due 2018 (the "Notes"). The aggregate principal amount of the Notes in the Offering was increased from the previously announced aggregate principal amount of
$150 million. The notes were priced at 101% of their principal amount, plus accrued interest from and including
September 15, 2011, providing estimated net proceeds to Pioneer, after fees and expenses, of approximately $172.6
million. The Notes will be treated as a single series of debt securities with the
$250 million in aggregate principal amount of 9.875% senior unsecured notes due 2018 issued on
March 11, 2010 (the "Existing Notes"), and will have the same terms as the Existing Notes except that they (1) will have a different issue date and issue price, (2) will be subject to a separate registration rights agreement and (3) until registered, will have different CUSIP numbers. Pioneer expects to close the sale of the Notes on
November 21, 2011, subject to the satisfaction of customary closing conditions.
Certain of Pioneer's existing and future domestic subsidiaries will fully and unconditionally guarantee the Notes. Pioneer intends to use the net proceeds from the Offering to fund a portion of its new-build drilling rig program, to fund any cash consideration payable in respect of possible acquisitions, or a combination of the foregoing depending on the timing of the opportunity and other factors. Pioneer intends to use any excess proceeds for general corporate purposes, which may include capital expenditures, additional acquisitions and associated working capital, or the repayment of indebtedness.