By Paul A. Harris
Portland, Ore., March 12 – United Arab Emirates-based Shelf Drilling Holdings Ltd. priced an upsized $310 million issue of 8 7/8% senior secured first-lien notes due Nov. 15, 2024 (expected ratings B2/CCC+) at 98.082 to yield 9½% on Friday, according to market sources.
The issue size increased from $300 million.
The yield printed 12.5 basis points inside of yield talk in the 9¾% area. The issue price came toward the cheap end of price talk that specified an original issue discount of 1 point to 2 points.
The deal was heard to be 1.5-times oversubscribed, according to a bond trader, who spotted the new Shelf Drilling 8 7/8% notes due November 2024 trading above issue price at 99½ bid, par offered shortly after Friday's close.
There appeared to be a significant amount of reverse inquiry in the deal, the trader added.
Credit Suisse was the left lead bookrunner.
The shallow water offshore driller, which has operations in Southeast Asia, the Middle East, India, West Africa and the North African/Mediterranean markets, plans to use the proceeds to pay off its revolver and cash collateralize all outstanding bank guarantees issued under the revolver, as well as to pay off its 8¾% senior secured notes and for general corporate purposes.
| Issuer: | Shelf Drilling Holdings Ltd.
|
| Amount: | $310 million, increased from $300 million
|
| Proceeds: | $304,054,000
|
| Maturity: | Nov. 15, 2024
|
| Securities: | Senior secured first-lien notes
|
| Left bookrunner: | Credit Suisse
|
| Co-manager: | DNB
|
| Coupon: | 8 7/8%
|
| Price: | 98.082
|
| Yield: | 9½%
|
| Spread: | 897 bps
|
| First call: | March 15, 2022 at 106.656
|
| Equity clawback: | 35% at 108.875 until March 15, 2022
|
| Trade date: | March 12
|
| Settlement date: | March 26
|
| Expected ratings: | Moody's: B2
|
| S&P: CCC+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 9¾% area all-in yield with 1 to 2 points OID
|
| Marketing: | Roadshow
|
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