Pacific Drilling Announces Receipt of Notice of Noncompliance from the New York Stock Exchange
April 10 2020 - 4:30PM
Business Wire
On April 7, 2020, Pacific Drilling S.A. (NYSE: PACD) (“Pacific
Drilling” or the “Company”) received notice from the New York Stock
Exchange (the “NYSE”) stating that the Company does not currently
satisfy the minimum share price standard for continued listing of
the Company’s common shares. Specifically, on April 6, 2020, the
30-trading-day average closing price per share of the Company’s
common shares was below $1.00, the minimum average share price
required for continued listing on the NYSE under Section 802.01C of
the NYSE Listed Company Manual.
Under NYSE rules, the Company has six months following receipt
of the notification to regain compliance with this continued
listing standard and avoid delisting. As required by NYSE rules,
the Company will notify the NYSE that it intends to cure the share
price deficiency and is considering all available options to return
to compliance. The Company can regain compliance at any time during
the six-month cure period if on the last trading day of any
calendar month during the cure period the Company has a closing
share price of at least $1.00 and an average closing share price of
at least $1.00 over the 30 trading-day period ending on the last
trading day of that month. If at the expiration of the cure period
(October 7, 2020), both a $1.00 closing share price on the last
trading day of the cure period and a $1.00 average closing share
price over the 30 trading-day period ending on the last trading day
of the cure period are not attained, the NYSE will commence
suspension and delisting procedures.
The Company’s common shares continue to be listed and to trade
on the NYSE, subject to the Company’s compliance with other NYSE
continued listing requirements. The Company’s common shares will
continue to trade under the symbol “PACD” but will have an added
designation of “.BC” to indicate the status of the common shares as
“below compliance.” The NYSE notification does not affect the
Company’s Securities and Exchange Commission reporting
requirements. The Company’s receipt of this notification did not
affect any of the Company’s existing contractual or debt
obligations.
About Pacific Drilling
With its best-in-class drillships and highly experienced team,
Pacific Drilling is committed to exceeding our customers’
expectations by delivering the safest, most efficient and reliable
deepwater drilling services in the industry. Pacific Drilling’s
fleet of seven drillships represents one of the youngest and most
technologically advanced fleets in the world. Pacific Drilling has
principal offices in Luxembourg and Houston. For more information
about Pacific Drilling, including our current Fleet Status, please
visit our website at www.pacificdrilling.com.
Forward-Looking
Statements
Certain statements and information contained in this press
release constitute “forward-looking statements” within the meaning
of the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995, and are generally identifiable by their use of
words such as “anticipate,” “believe,” “could,” “estimate,”
“expect,” “forecast,” “intend,” “our ability to,” “may,” “plan,”
“potential,” “predict,” “project,” “projected,” “should,” “will,”
“would”, or other similar words which are not generally historical
in nature. The forward-looking statements speak only as of the date
hereof, and we undertake no obligation to publicly update or revise
any forward-looking statements after the date they are made,
whether as a result of new information, future events or
otherwise.
Our forward-looking statements express our current expectations
or forecasts of possible future results or events, including future
financial and operational performance and cash balances; revenue
efficiency levels; market outlook; forecasts of trends; future
client contract opportunities; future contract dayrates; our
business strategies and plans or objectives of management;
estimated duration of client contracts; backlog; expected capital
expenditures; projected costs and savings; expectations regarding
our two subsidiaries’ application to appeal the arbitration award
against them related to the drillship known as the Pacific Zonda in
favor of SHI, the outcome of such subsidiaries’ ongoing bankruptcy
proceedings and the potential impact of the Tribunal’s decision on
our future operations, financial position, results of operations
and liquidity.
Although we believe that the assumptions and expectations
reflected in our forward-looking statements are reasonable and made
in good faith, these statements are not guarantees, and actual
future results may differ materially due to a variety of factors.
These statements are subject to a number of risks and uncertainties
and are based on a number of judgments and assumptions as of the
date such statements are made about future events, many of which
are beyond our control. Actual events and results may differ
materially from those anticipated, estimated, projected or implied
by us in such statements due to a variety of factors, including if
one or more of these risks or uncertainties materialize, or if our
underlying assumptions prove incorrect.
Important factors that could cause actual results to differ
materially from our expectations include: evolving risks from the
coronavirus outbreak and resulting significant disruption in
international economies, and international financial and oil
markets, including a substantial decline in the price of oil during
2020; the global oil and gas market and its impact on demand for
our services; the offshore drilling market, including changes in
capital expenditures by our clients; changes in worldwide oil and
gas supply and demand; rig availability and supply and demand for
high-specification drillships and other drilling rigs competing
with our fleet; our ability to enter into and negotiate favorable
terms for new drilling contracts or extensions; our ability to
successfully negotiate and consummate definitive contracts and
satisfy other customary conditions with respect to letters of
intent and letters of award that we receive for our drillships;
actual contract commencement dates; possible cancellation,
renegotiation, termination or suspension of drilling contracts as a
result of mechanical difficulties, performance, market changes or
other reasons; costs related to stacking of rigs and costs to
reactivate a stacked rig; downtime and other risks associated with
offshore rig operations, including unscheduled repairs or
maintenance, relocations, severe weather or hurricanes or
accidents; our small fleet and reliance on a limited number of
clients; the risks of litigation in foreign jurisdictions and
delays caused by third parties in connection with such litigation;
the outcome of our two subsidiaries’ bankruptcy proceedings and any
actions that SHI or others may take in the bankruptcy or other
proceedings against the Company and its subsidiaries; the risk that
our common shares could be delisted from trading on the New York
Stock Exchange; and the other risk factors described in our 2019
Annual Report on Form 10-K filed with the Securities and Exchange
Commission on March 12, 2020 and our Reports on Form 8-K. These
documents are available through our website at
www.pacificdrilling.com or through the SEC’s website at
www.sec.gov.
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version on businesswire.com: https://www.businesswire.com/news/home/20200410005144/en/
Investor Contact: James Harris Pacific Drilling S.A. +713 334
6662 Investor@pacificdrilling.com
Media Contact: Amy Roddy Pacific Drilling S.A. +1 713-334-6662
Media@pacificdrilling.com
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