Oil States International, Inc. (NYSE: OIS) today announced that its Board of Directors has approved the spin-off of its accommodations business, recently named Civeo Corporation, through the distribution of all the shares of Civeo common stock to the holders of Oil States common stock.
The distribution of Civeo shares is expected to occur on May 30, 2014, with Oil States shareholders receiving two shares of Civeo common stock for every one share of Oil States common stock held at the close of business on May 21, 2014, the record date for the distribution. Following the spin-off, Civeo will be an independent, publicly traded company, and Oil States will retain no ownership in Civeo. In connection with the spin-off, Civeo will make a cash distribution of $750.0 million to Oil States; Civeo intends to fund this distribution with cash proceeds from borrowings under its expected $775 million term loan.
