New Issue: Hercules Offshore prices $300 million eight-year notes at par to yield 7½%

By Paul A. Harris

Portland, Ore., Sept. 17 - Hercules Offshore, Inc. priced a $300 million issue of eight-year senior notes (B3/B/) at par to yield 7½% on Tuesday, according to a market source.

The yield printed at the tight end of the 7½% to 7 5/8% yield talk.

Deutsche Bank Securities Inc., UBS Investment Bank, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. and Capital One Securities are managing the Rule 144A and Regulation S deal.

The notes come with three years of call protection.

The Houston-based provider of offshore drilling equipment and services plans to use the proceeds, together with cash on hand, to take out its 10½% senior secured notes due 2017.

Issuer:	Hercules Offshore, Inc.
Amount:	$300 million
Maturity:	Oct. 1, 2021
Securities:	Senior notes
Bookrunners:	Deutsche Bank Securities Inc., UBS Investment Bank, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., Capital One Securities
Co-managers:	Pareto Securities, Comerica Securities, Tudor Pickering Holt
Coupon:	7½%
Price:	Par
Yield:	7½%
First call:	Oct. 1, 2016 at 105.625
Trade date:	Sept. 17
Settlement date:	Oct. 1
Ratings:	Moody's: B3
	Standard & Poor's: B
Distribution:	Rule 144A and Regulation S
Price talk:	7½% to 7 5/8%
Marketing:	Quick to market

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