New Issue: Precision Drilling prices $400 million 10.5-year notes at par to yield 5¼%

By Paul A. Harris

Portland, Ore., May 29 - Precision Drilling Corp. priced a $400 million issue of 10.5-year senior notes (Ba1/BB) at par to yield 5¼% on Thursday, according to a syndicate source.

The yield came on top of yield talk.

Credit Suisse Securities (USA) LLC, RBC Capital Markets and Morgan Stanley & Co. were joint bookrunners.

The Calgary, Alta. -based provider of drilling services to the oil and gas industry plans to use the proceeds for general corporate purposes including building new rigs.

Issuer:	Precision Drilling Corp.
Securities:	Senior notes
Amount:	$400 million
Maturity:	Nov. 15, 2024
Bookrunners:	Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC, Morgan Stanley & Co. LLC
Co-managers:	BofA Merrill Lynch, HSBC Securities (USA) Inc., Scotia Capital (USA) Inc., TD Securities (USA) LLC, Wells Fargo Securities LLC
Coupon:	5¼%
Price:	Par
Yield:	5¼%
Spread:	287 bps
First call:	May 15, 2019 at 102.625
Equity clawback:	35% at 105.25 until May 15, 2017
Investor put:	101% upon change of control
Trade date:	May 29
Settlement date:	June 3
Ratings:	Moody's: Ba1
	Standard & Poor's: BB
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	5¼% area
Marketing:	Roadshow

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