KCA Deutag talks $500 million eight-year notes with 13½% area yield

By Paul A. Harris

St. Louis, Aug. 5 - Turbo Beta plc, the owner of Scotland-based oil and gas services company KCA Deutag Drilling Group, Ltd., talked its $500 million offering of eight-year senior unsecured notes (Caa2/CCC) with a 13½% area yield, an informed source said Thursday.

The deal is expected to price on Friday.

Goldman Sachs & Co. is the global coordinator for the Rule 144A and Regulation S offering.

HSBC, Lloyds TSB and Royal Bank of Scotland are the joint bookrunners.

Natixis Bleichroeder is the co-manager.

The notes come with four years of call protection.

Proceeds, together with an equity injection from shareholders, will be used to refinance mezzanine debt.

The company is based in Aberdeen, Scotland.

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