New Issue: Grant Prideco upsizes notes to $200 million, priced at par to yield 6 1/8%

By Paul A. Harris

St. Louis, July 14 - Grant Prideco, Inc. priced an upsized, quick-to-market $200 million issue of 10-year senior unsecured notes (Ba2/BB) at par to yield 6 1/8%, according to a syndicate source.

Price talk was 6 1/8% to 6¼%.

Banc of America Securities, Citigroup, Credit Suisse First Boston and Deutsche Bank Securities were joint bookrunners for the Rule 144A/Regulation S with registration rights issue. JP Morgan and Natexis were co-managers.

Proceeds will be used to finance the tender for the company's outstanding 9% senior notes due 2009.

The issue was upsized from $175 million.

Grant Prideco is a Houston, Texas, equipment and services provider to oil and gas industry.

Issuer:	Grant Prideco, Inc.
Amount:	$200 million
Maturity:	Aug. 15, 2015
Security description:	Senior unsecured notes
Bookrunners:	Banc of America Securities, Citigroup, Credit Suisse First Boston, Deutsche Bank Securities
Co-managers:	JP Morgan, Natexis
Coupon:	6 1/8%
Price:	Par
Yield:	6 1/8%
Spread:	194 basis points
Call features:	Callable after Aug. 15, 2010 at 103.06, 102.04, 101.02, par on and after Aug. 15, 2013
Equity clawback:	Until Aug. 15, 2008 for 35% at 106.125
Trade date:	July 14
Settlement date:	July 27
Ratings:	Moody's: Ba2
	Standard & Poor's: BB
Price talk:	6 1/8% to 6¼%

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