New Issue: Key Energy $100 million add-on priced at 101.50, yields 8.005%

By Paul A. Harris

St. Louis, Mo., Feb. 21 - Key Energy Services, Inc. priced a drive-by $100 million add-on to its 8 3/8% senior notes due March 1, 2008 (Ba3/BB-) on Thursday, according to a syndicate source. It priced at 101.50, to yield 8.005%.

Price talk was 101-101.5, according to the source.

Lehman Brothers was the sole bookrunning manager. Bear Stearns & Co. and First Albany were co-managers.

Proceeds from the off-the-shelf notes will be used to repay bank debt and for general corporate purposes.

The original $175 million deal priced on March 1, 2001.

Issuer:	Key Energy Services, Inc.
Amount:	$100 million add-on to its 8 3/8% senior notes due March 1, 2008
Bookrunner:	Lehman Brothers
Coupon:	8 3/8%
Price:	101.50
Yield:	8.005%
Spread:	353 basis points over the 5½% Treasury of February 2008
Call features:	Callable on March 1, 2005 at 104.188, 102.094, par on March 1, 2010 and thereafter
Equity clawback:	Until March 1, 2004 for up to 35% at 108.375
Settlement date:	March 1 (T+6) flat
Ratings:	Moody's: Ba3
	Standard & Poor's: BB-
Rule 144A Cusip:	492914AN6

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