Petrofac begins marketing $500 million five-year secured notes; pricing expected this week

By Paul A. Harris

Portland, Ore., Oct. 26 – Petrofac Ltd. is expected to price $500 million of five-year senior secured notes (BB-/BB-) before the end of the week, according to market sources.

The deal is being whispered in the 10% area, with some U.S. high-yield accounts taking its measure.

Goldman Sachs is leading the deal.

The notes come with two years of call protection.

The Saint Helier, Jersey, U.K.-based oilfield services provider plans to use the proceeds, plus proceeds from an equity float, to refinance debt, some of it related to a £77 million penalty imposed by the United Kingdom's Serious Fraud Office at the conclusion of a bribery investigation into the company.

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