By Paul A. Harris
St. Louis, Aug. 8 - Allis-Chalmers Energy Inc. priced an upsized $95 million add-on to its 9% senior notes due Jan. 15, 2014 (B3/B-) at par to yield 9% on Tuesday, according to an informed source.
The dollar price came at the wide end of the 100.00 to 100.50 price talk.
RBC Capital Markets was the bookrunner for the add-on, which was priced via Rule 144A with registration rights and via Regulation S.
In addition, the company sold 3 million shares in a concurrent equity offering.
Proceeds will be used to help fund the acquisition of DLS Drilling, Logistics & Services Corp., to repay existing debt and for general corporate purposes.
The add-on was upsized from $80 million.
The original $160 million issue priced at par on Jan. 12, 2006.
Allis-Chalmers Energy is a Houston-based provider of oilfield services and equipment to oil and gas exploration and production companies.
Issuer: | Allis-Chalmers Energy Inc.
|
Amount: | $95 million (increased from $80 million)
|
Maturity: | Jan. 15, 2014
|
Security description: | Add-on to 9% senior notes
|
Bookrunner: | RBC Capital Markets
|
Coupon: | 9%
|
Price: | Par
|
Yield: | 9%
|
Spread: | 412 bps
|
Call features: | Make-whole call at Treasuries plus 50 bps until Jan. 15, 2010, then callable at 104.50, 102.25, par on and after Jan. 15, 2012
|
Equity clawback: | Until Jan 15, 2009 for 35% at 109.00
|
Trade date: | Aug. 8
|
Settlement date: | Aug. 14 flat
|
Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
Distribution: | Rule 144A with registration rights and Regulation S
|
Price talk: | 100.00 to 100.50
|
Original issue: | $160 million issue priced at par on Jan. 12, 2006
|
Total issue size: | $255 million
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.