Allis-Chalmers will buy more 8½% notes, fewer 9% notes under amended tender offer

By Angela McDaniels

Tacoma, Wash., June 3 - Allis-Chalmers Energy Inc. said it amended the tender offer for its $255 million of 9% senior notes due Jan. 15, 2014 and $250 million of 8½% senior notes due March 1, 2017 to increase the amount of 8½% notes it will purchase and decrease the amount of 9% notes it will purchase.

The company will now purchase up to $50 million of the 8½% notes instead of $25 million and up to $75 million of the 9% notes instead of $100 million.

In addition, the company extended the early participation date to coincide with the offer expiration - 5 p.m. ET on June 18 - from June 3.

The purchase prices will be determined using a modified Dutch auction procedure.

For each $1,000 principal amount, the company will pay between $570 and $650 for the 9% notes and $520 to $600 for the 8½% notes, including a $20 early participation payment.

The total consideration will be determined using a base price plus a clearing premium not to exceed $80.

Allis-Chalmers said it also will pay accrued interest to the settlement date.

The offer began on May 20 and is conditioned on financing.

RBC Capital Markets Corp. (212 618-2204) is the dealer manager. Global Bondholder Services Corp. (866 470-3600 or call collect 212 430-3774) is the information agent and depositary.

Allis-Chalmers Houston-based oilfield services company.

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