Horsepower Holdings' $275 million note offering delayed until after July 15 Grey Wolf shareholders meeting

By Paul A. Harris

St. Louis, July 9 - Horsepower Holdings, Inc. has delayed its $275 million offering of 10-year senior notes until after the July 15 Grey Wolf, Inc. shareholders meeting, according to an informed source.

An investor roadshow had been expected to begin on Tuesday.

Earlier in the week the merger of Basic Energy Services, Inc. with and into Grey Wolf came under criticism, according to press reports that RiskMetrics Group recommended that Grey Wolf shareholders vote against the $2.9 billion deal.

Meanwhile in a Tuesday press release Grey Wolf announced the recommendation from Egan-Jones Proxy Services that stockholders vote in favor of the merger.

UBS Investment Bank is the left lead manager for the delayed Rule 144A and Regulation S note offering. Goldman Sachs & Co. is the joint bookrunner.

Last week a market source told Prospect News that the $275 million of proceeds were shifted to the bonds following the company's decision to eliminate its $275 million term loan B.

In addition to funding a portion of the merger, some proceeds will also be used to refinance Basic Energy's revolver.

The prospective issuer is a Houston-based provider of contract drilling and well site services to the U.S. upstream oil and gas sector.

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