By Lisa Kerner
Charlotte, N.C., July 21 - Helmerich & Payne, Inc. and Helmerich & Payne International Drilling Co. completed a private placement of $200 million total principal amount of 6.1% senior unsecured fixed-rate notes.
The notes are due July 2016, according to a form 8-K filed with the Securities and Exchange Commission.
Proceeds will be used to fund capital expenditures, to repay debt and for other general corporate purposes.
Helmerich & Payne and some subsidiaries are guaranteeing the notes.
Interest on the notes is payable semiannually.
Helmerich & Payne International will make five equal annual principal repayments of $40 million beginning on the third anniversary of the closing date.
Under the terms of the placement, Helmerich & Payne International is required to maintain a ratio of EBITDA to interest expense at a minimum of 2.5 to 1.0 for any four-fiscal-quarter period.
Tulsa-based Helmerich & Payne engages in the contract drilling of oil and gas wells.
| Issuer: | Helmerich & Payne International Drilling Co.
|
| Guarantor: | Helmerich & Payne, Inc.
|
| Issue: | Senior unsecured fixed-rate notes
|
| Amount: | $200 million
|
| Maturity: | July 21, 2016, amortizes annually starting three years from closing
|
| Coupon: | 6.1%
|
| Call: | Make-whole call at Treasuries plus 50 bps
|
| Settlement: | July 21
|
| Distribution: | Private placement
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