New Issue: Pride International upsized $500 million 10-year notes yield 7.45%

By Paul A. Harris

St. Louis, June 22 - Pride International Inc. priced an upsized $500 million issue of 10-year senior notes (Ba2/BB-) Tuesday at 99.474 with a 7 3/8% coupon to yield 7.45%, a syndicate source said.

Price talk was in the area of 7½%.

Citigroup, Banc of America Securities and Deutsche Bank Securities ran the books for the Rule 144A issue.

Proceeds will be used to retire the company's 9 3/8% senior notes due 2007 and its 10% senior notes due 2009.

The issuer is a Houston-based drilling contractor.

Issuer:	Pride International Inc.
Amount:	$500 million
Maturity:	July 15, 2014
Security description:	Senior notes
Bookrunners:	Citigroup, Banc of America Securities, Deutsche Bank Securities
Co-managers:	NBP, BNP Paribas, Calyon
Coupon:	7 3/8%
Price:	99.474
Yield:	7.45%
Spread:	275 basis points
Call features:	Callable after July 15, 2009 at 103.688, 102.458, 101.229, par on or after July 15, 2012
Equity clawback:	Until July 15, 2007 for 35% at 107.375
Pricing date:	June 22
Settlement date:	July 7
Ratings:	Moody's: Ba2
	Standard & Poor's: BB-
Price talk:	7½% area

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