New Issue: Oceaneering prices $200 million tap of 6% notes due 2028 at 91.5 to yield 8.377%

By Paul A. Harris

Portland, Ore., Sept. 21 – Oceaneering International, Inc. priced a $200 million add-on to its 6% senior notes due Feb. 1, 2028 (Ba3/BB-) at 91.5 to yield 8.377% on Thursday, according to market sources.

The issue price came in the middle of the 91 to 92 price talk. Initial talk was 90 to 91.

The Houston-based provider of engineered services and products to the offshore oil and gas industry plans to use the proceeds plus cash on hand to fund a tender offer for its 4.65% senior notes due 2024.

Issuer:	Oceaneering International, Inc.
Amount:	$200 million
Issue:	Senior notes add-on
Maturity:	Feb. 1, 2028
Bookrunners:	J.P. Morgan Securities LLC, Wells Fargo Securities LLC and DNB Markets Inc.
Co-manager:	Citigroup Global Markets Inc.
Coupon:	6%
Price:	91.5
Yield:	8.377%
Spread:	370 bps
Call protection:	Make-whole call at Treasuries plus 40 bps prior to Nov. 1, 2027, then callable at par
Trade date:	Sept. 21
Settlement date:	Oct. 2
Ratings:	Moody’s: Ba3
	S&P: BB-
Distribution:	Rule 144A and Regulation S
Price talk:	91 to 92
Marketing:	Roadshow
Original issue:	$300 million priced in February 2018
Fungibility:	Add-on notes will become fungible with the original notes

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