New Issue: KCA Deutag prices $375 million seven-year notes at par to yield 7¼%

By Paul A. Harris

Portland, Ore., May 13 - KCA Deutag UK Finance plc priced a $375 million issue of seven-year senior secured notes (B3/B/) at par to yield 7¼% on Tuesday, according to a market source.

The yield printed at the tight end of the 7¼% to 7½% yield talk.

JPMorgan, Goldman Sachs International, HSBC and Lloyds Securities were the bookrunners.

The Aberdeen, Scotland-based energy drilling contractor plans to use the proceeds to refinance existing bank debt and to add a small amount of cash to its balance sheet.

Issuer:	KCA Deutag UK Finance plc
Amount:	$375 million
Maturity:	May 15, 2021
Securities:	Senior secured notes
Bookrunners:	JPMorgan, Goldman Sachs International, HSBC, Lloyds Securities
Coupon:	7¼%
Price:	Par
Yield:	7¼%
Spread:	509 bps
First call:	May 15, 2017 at 103.625
Equity clawback:	35% at 107.25 until May 15, 2017
Change-of-control put:	101%
Trade date:	May 13
Settlement date:	May 16
Ratings:	Moody's: B3
	Standard & Poor's: B
Distribution:	Rule 144A and Regulation S for life
Price talk:	7¼% to 7½%
Marketing:	Roadshow

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