Cordy Oilfield Services Inc.
TSX VENTURE : CKK

Cordy Oilfield Services Inc.

October 02, 2007 10:25 ET

Cordy Redeems $17,738,000 of 10% Debentures

CALGARY, ALBERTA--(Marketwire - Oct. 2, 2007) - Cordy Oilfield Services Inc. ("Cordy") (TSX VENTURE:CKK) announces that it has redeemed $17,738,000 of its 10% debentures.

In December 2005 Cordy issued 10% debentures in the principal amount of $12,800,000 which mature in December 2007 and debentures in the principal amount of $2,200,000 which mature in February 2008. Additionally, in March 2006 Cordy issued 10% debentures in the principal amount of $4,000,000 which mature in March 2008. Collectively, these debentures are referred to in this news release as the "Debentures."

Cordy exercised its right to redeem Debentures in the aggregate principal amount of $6,200,000 that otherwise matured in 2008 prior to their respective maturity dates. These Debentures were redeemed without penalty or bonus effective September 30, 2007. In addition, holders of Debentures in the aggregate principal amount of $11,538,000 that otherwise matured in December 2007 have accepted the Corporation's offer to redeem such debentures prior to their maturity date. Of these, Debentures in the aggregate principal amount of $10,538,000 were redeemed without bonus or penalty effective September 30, 2007 and Debentures in the aggregate principal amount of $1,000,000 were redeemed without bonus or penalty effective October 1, 2007.

Following these redemptions, Cordy has issued and will have outstanding Debentures in the aggregate principal amount of $1,262,000, all of which will be paid out in full at maturity on December 22, 2007.

David Mullen, Chairman and Chief Executive Officer of Cordy comments: "We have decided to redeem the Debentures prior to maturity as we believe it is the best use of our cash in the short term. We continue to evaluate acquisitions and believe we have the necessary financial resources to finance any future acquisitions as we go forward."

Approvals and Disclosure

Debentures held by each of Akita International Ltd., a company controlled by Kevin Mullen, RJM Corp., a company controlled by Robert MacLean, and Jay Westman were redeemed by Cordy. Kevin Mullen, Robert Maclean and Jay Westman are directors of Cordy. The principal amounts of the Debentures held were $3.5 million, $2 million and $928,000 respectively. The Board of Directors of Cordy reviewed and considered the early redemption of the Debentures at Board meetings held through the course of this year. Kevin Mullen, Robert Maclean and Jay Westman abstained from all deliberations relating to the early redemption of the Debentures. The non-interested members of the Board of Directors unanimously approved the early redemption of the Debentures. Cordy is exempt from the requirement for a formal valuation under Ontario Securities Commission Rule 61-501 in connection with the early redemption of the Debentures held by each of Akita International Ltd., RJM Corp. and Jay Westman because the total value of these transactions is not more than 25% of Cordy's market capitalization and, as a result, minority approval is also not required under Ontario Securities Commission Rule 61-501.

Cordy owns businesses in Alberta and British Columbia in the construction, environmental, manufacturing and pipeline sectors and is focused on implementing strategic and organic growth strategies.

The TSX Venture Exchange does not accept responsibility for the accuracy or adequacy of this release.

Contact Information

  • Cordy Oilfield Services Inc.
    David Mullen
    CEO
    (403) 266-2067
    (403) 266-2087 (FAX)
    Email: dmullen@cordy.ca
    or
    For investor relations information, contact:
    Cordy Oilfield Services Inc.
    David Orr
    Senior Vice President
    Email: dorr@cordy.ca
    Website: www.cordy.ca