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Subsequent Events
9 Months Ended
Sep. 30, 2011
Subsequent Events [Abstract] 
Subsequent Events
(20) Subsequent Events
Acquisition of Complete Production Services, Inc.
On October 9, 2011, the Company agreed to acquire all of the outstanding equity securities of Complete Production Services, Inc. (NYSE: CPX) (Complete) pursuant to an Agreement and Plan of Merger among the Company, SPN Fairway Acquisition, Inc., its wholly-owned subsidiary, and Complete. Pursuant to the merger agreement, Complete stockholders will receive 0.945 of a share of the Company’s common stock and $7.00 cash, without interest, for each share of Complete common stock outstanding at the time of the merger. Based on the Company’s share price of $26.76 at October 20, 2011, the total consideration for this acquisition approximates $2,608 million, of which approximately $552 million is to be paid in cash. The transaction is anticipated to close as early as the end of 2011.
In connection with this acquisition, the Company intends to amend its bank credit facility to increase its revolving credit facility to $600 million and to include a $400 million term loan in order to pay the cash portion of the merger consideration. The Company also intends to commence a debt financing in order to refinance all of Complete’s outstanding long-term debt.
Complete focuses on providing specialized completion and production services and products that help oil and gas companies develop hydrocarbon reserves, reduce costs and enhance production. Complete’s operations are located throughout the United States, and in western Canada and Mexico. Complete’s business is comprised of three segments: Completion and Production Services, Drilling Services and Product Sales.
Redemption of 1.50% Senior Exchangeable Notes
On October 17, 2011, the Company issued notice to the holders of its outstanding 1.50% senior exchangeable notes due 2026 that it would redeem all of the notes on December 15, 2011. The Company intends to partially fund the redemption of these notes with cash on hand and short-term investments currently held for this purpose (see note 8).