Shelf Drilling talks $550 million seven-year notes at 8¼%-8½%; pricing Wednesday

By Paul A. Harris

Portland, Ore., Jan. 31 – Dubai-based Shelf Drilling Holdings, Ltd. talked its $550 million offering of seven-year senior notes (B2/B-) to yield 8¼% to 8½%, according to a syndicate source.

Official talk comes in line with initial guidance in the low to mid 8% area, market sources say.

Books close at 12:30 p.m. ET on Wednesday, and the Rule 144A and Regulation S for life deal is set to price thereafter.

Credit Suisse Securities (USA) LLC is the lead bookrunner. RBC Capital Markets LLC and J.P. Morgan Securities LLC are the joint bookrunners. Arctic Securities, Clarksons Platou Securities, DNB Markets, ING and UBS Investment Bank are co-managers.

The notes become callable after three years at par plus 75% of the coupon and feature a three-year 35% equity clawback at par plus the coupon and a 101% poison put.

The offshore jackup rig operator plans to use the proceeds to repay outstanding notes maturing in 2018 and 2020.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.