New Issue: Ocean Rig prices $500 million five-year notes at par to yield 7¼%

By Paul A. Harris

Portland, Ore., March 20 - Ocean Rig UDW Inc. priced a $500 million issue of five-year senior notes (Caa1/CCC+) at par to yield 7¼% on Thursday, according to a syndicate source.

The yield printed on top of yield talk.

Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. were the joint bookrunners.

The Nicosia, Cypress-based offshore drilling contractor plans to use the proceeds, together with other available funds, to repurchase or redeem its 9½% senior notes due 2016.

Issuer:	Ocean Rig UDW Inc.
Amount:	$500 million
Maturity:	April 1, 2019
Securities:	Senior notes
Bookrunners:	Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. Co-managers:	Nordea Bank Danmark A/S, Commerz Markets LLC, ABN Amro Securities (USA) LLC
Coupon:	7¼%
Price:	Par
Yield:	7¼%
Spread:	550 bps
First call:	April 1, 2017 at 105.438
Equity clawback:	35% at 107.25 until April 1, 2017
Investor put:	101% upon change of control
Trade date:	March 20
Settlement date:	March 26
Ratings:	Moody's; Caa1
	Standard & Poor's: CCC+
Distribution:	Rule 144A and Regulation S for life
Price talk:	7¼% area
Marketing:	Roadshow

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