MBI Energy hikes price talk on $250 million eight-year notes to 10% area from 9½% area

By Paul A. Harris

Portland, Ore., April 25 - MBI Energy Services, Inc. made an upward revision to price talk on its $250 million offering of eight-year senior notes (confirmed Caa1/expected B), hiking talk to the 10% area from previous talk in the 9½% area, a syndicate source said on Wednesday.

The notes have also undergone covenant changes.

The books close at 10 a.m. ET on Thursday, and the deal is set to price thereafter. Previously the notes had been expected to price on Wednesday.

RBC Capital Markets is the left bookrunner. Wells Fargo Securities LLC is the joint bookrunner.

Imperial Capital and US Bancorp are the joint lead managers.

Fifth Third Securities Inc., Comerica Securities and Tudor Pickering Holt & Co. are the co-managers.

The Rule 144A and Regulation S with registration rights notes come with four years of call protection and feature a three-year 35% equity clawback and a 101% poison put.

Proceeds will be used to repay debt and for general corporate purposes.

MBI Energy Services is a Belfield, N.D.-based provider of products and services to the energy industry. The company is focused primarily on oil resource plays in the Bakken Field.

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