Superior Energy plans to issue bonds to fund Complete acquisition

By Aleesia Forni

Columbus, Ohio, Nov. 16 - Superior Energy Services Inc.'s chief executive officer David Dunlap said the company plans to go to market with a bond issuance before the close of its acquisition of Complete Production Services Inc. "to pay for some of the cash portion of this transaction."

As previously reported, the company expects the cash payment to total roughly $570 million.

"But overall, we're left with a balance sheet that's very strong, and I feel very comfortable with where it stands from a debt standpoint," Dunlap continued.

Dunlap said the company's key credit and leverage statistics remain "very comfortable" even after allowing for the acquisition.

The transaction is "primarily a stock deal," which will allow the company's balance sheet to remain "very strong," Dunlap said during the company's presentation at the Citi Small and Mid-Cap Conference on Wednesday.

The 79% stock and 21% cash deal is expected to close as soon as the end of calendar 2011, Dunlap said.

Dunlap continued that Superior expects an excess of $1 billion in cash flow in 2012, and the company is "very strong from a financial standpoint."

Superior Energy is a New Orleans-based provider of oilfield services and equipment.

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