New Issue: Key Energy prices upsized $475 million 6¾% 10-year notes at par

By Paul A. Harris

Portland, Ore., March 1 - Key Energy Services, Inc. priced an upsized $475 million issue of 10-year senior notes (B1/BB/) at par to yield 6¾% on Tuesday, according to an informed source.

The yield printed on top of the price talk.

Credit Suisse Securities, J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Morgan Stanley & Co. Inc. were the joint bookrunners for the quick-to-market issue, which was upsized from $450 million.

The Houston-based well servicing contractor plans to use the proceeds fund the tender offer for its 8 3/8% notes due 2014 and for general corporate purposes.

Issuer:	Key Energy Services, Inc.
Amount:	$475 million, increased from $450 million
Maturity:	March 1, 2021
Securities:	Senior notes
Bookrunners:	Credit Suisse Securities, J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Morgan Stanley & Co. Inc.
Co-managers:	Capital One Southcoast, Comerica Securities, Deutsche Bank Securities Inc., Scotia Capital
Coupon:	6¾%
Price:	Par
Yield:	6¾%
Spread:	329 bps
Call features:	Make-whole call at Treasuries plus 50 bps until March 1, 2016, then callable at 103.375, 102.25, 101.125, par on and after March 1, 2019
Equity clawback:	35% at 106.75 until March 1, 2014
Change-of-control put:	101%
Trade date:	March 1
Settlement date:	March 4
Ratings:	Moody's: B1
	Standard & Poor's: BB
Distribution:	Public
Price talk:	6¾% area
Marketing:	Quick to market

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