By Andrea Heisinger
New York, May 28 - Pride International, Inc. priced $500 million 8.5% 10-year split-rated senior notes Thursday to yield Treasuries plus 587.5 basis points, according to an informed source and a press release.
The notes (Ba1/BBB-/) were sold off the high-grade desk and priced at 99.641 to yield 8.533%.
There is a make-whole call at Treasuries plus 50 bps. The notes also feature a change-of-control put of 101%.
The deal had price guidance in the 500 bps area, the informed source said. There was more interest from high-yield accounts than investment-grade accounts, he said. The split was about 60% interest from junk accounts to 40% on the high-grade side, he said.
Bookrunners were Citigroup Global Markets Inc. and Goldman Sachs & Co., with Banc of America Securities LLC and Wachovia Capital Markets LLC as passive books.
Co-managers were BNP Paribas Securities Corp., Howard Weil, Inc., Natixis Bleichroeder Inc. and UniCredit Capital Markets.
Proceeds will be used for general corporate purposes, including payments to four drill ships under construction and for other capital expenditures.
The offshore drilling contractor is based in Houston.
| Issuer: | Pride International, Inc.
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Maturity: | June 15, 2019
|
| Bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co. (active), Banc of America Securities LLC, Wachovia Capital Markets LLC (passive)
|
| Co-managers: | BNP Paribas Securities Corp., Howard Weil, Inc., Natixis Bleichroeder Inc., UniCredit Capital Markets
|
| Coupon: | 8.5%
|
| Price: | 99.641
|
| Yield: | 8.533%
|
| Spread: | Treasuries plus 587.5 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Change-of-control put: | 101%
|
| Trade date: | May 28
|
| Settlement date: | June 2
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BBB-
|
| Price talk: | 500 bps area
|
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