Slim Unit Buys into Oil Driller

Carso Infraestructura y Construccion (Cicsa), owned by Mexico tycoon Carlos Slim, has acquired a 60% stake in Bronco Drilling MX, a subsidiary of Oklahoma-based Bronco Drilling, for about $30m. Bronco has also entered into a $75m revolving credit facility with Banco Inbursa, a portion of the proceeds of which were used to retire an existing credit facility. The remainder will be used for working capital and general corporate purposes. Draws under the facility will cost 5.80% over Libor. The facility includes a financial covenant that allows for a maximum total leverage ratio of 3.50x. The facility matures in September 2014. In addition, Bronco Drilling issued to Cicsa through Inbursa a detachable warrant exercisable for up to 5.44m shares of its common stock. The warrant has a 3-year term, and the exercise price is $6.50 from the closing date to the first anniversary of the closing date, $7.00 per share following the first anniversary of the closing date through the second anniversary of the closing date, and $7.50 per share following the second anniversary of the closing date through the third.