By Andrea Heisinger
New York, Aug. 3 - Pride International, Inc. sold a benchmark $1.2 billion of notes (Ba1/BBB-/BB+) in a reallocated two tranches on Tuesday, a source close to the deal said.
The sale was initially announced as a single tranche of 10-year notes, with the longer bonds added later.
The $900 million tranche of 6.875% 10-year notes priced at par to yield Treasuries plus 396.8 basis points.
An added tranche of $300 million 30-year bonds priced at par to yield 7.875% with a spread of Treasuries plus 383.8 bps.
The notes feature a change-of-control put at 101%.
Goldman Sachs & Co., Citigroup Global Markets Inc. and Wells Fargo Securities were the bookrunners.
Co-managers were Bank of America Merrill Lynch and Natixis Bleichroeder LLC.
Proceeds are being used for general corporate purposes, including payments with respect to three drill ships under construction, and for other capital expenditures.
The offshore drilling contractor is based in Houston.
| Issuer: | Pride International, Inc.
|
| Issue: | Senior unsecured notes
|
| Amount: | $1.2 billion
|
| Bookrunners: | Goldman Sachs & Co., Citigroup Global Markets Inc., Wells Fargo Securities
|
| Co-managers: | Bank of America Merrill Lynch, Natixis Bleichroeder LLC
|
| Change-of-control put: | 101%
|
| Trade date: | Aug. 3
|
| Settlement date: | Aug. 6
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BBB-
|
| Fitch: BB+
|
|
|
| 10-year notes
|
| Amount: | $900 million
|
| Maturity: | Aug. 15, 2020
|
| Coupon: | 6.875%
|
| Price: | Par
|
| Yield: | 6.875%
|
| Spread: | Treasuries plus 396.8 bps
|
|
|
| 30-year bonds
|
| Amount: | $300 million
|
| Maturity: | Aug. 15, 2040
|
| Coupon: | 7.875%
|
| Price: | Par
|
| Yield: | 7.875%
|
| Spread: | Treasuries plus 383.8 bps
|
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