By Paul A. Harris
St. Louis, Feb. 9 - Seitel, Inc. priced a $400 million issue of seven-year senior notes (B3/B-) at par to yield 9¾% on Friday, according to an informed source.
The yield came on top of price talk that was earlier tighened from the 10% area.
Morgan Stanley, Deutsche Bank Securities and UBS Investment Bank were joint bookrunners.
Proceeds will be used to fund the acquisition of Seitel by ValueAct Capital and to refinance existing debt.
The notes were issued by Seitel Acquisiton Corp. via Rule 144A with registration rights and via Regulation S.
The issuer is a Houston-based provider of seismic data to the oil and gas industry.
| Issuer: | Seitel Acquisition Corp.
|
| Amount: | $400 million
|
| Maturity: | Feb. 15, 2014
|
| Security description: | Senior notes
|
| Bookrunners: | Morgan Stanley, Deutsche Bank Securities, UBS Investment Bank
|
| Coupon: | 9¾%
|
| Price: | Par
|
| Yield: | 9¾%
|
| Spread: | 497 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Feb. 15, 2011, then callable at 104.875, 102.438, par on and after Feb. 15, 2013
|
| Equity clawback: | Until Feb. 15, 2010 for up to 35% at 109.75
|
| Trade date: | Feb. 9
|
| Settlement date: | Feb. 14
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A with registration rights/Regulation S
|
| Price talk: | 9¾% area (revised from 10% area)
|
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