Parker Drilling begins tender offer, consent bid for 9 1/8% notes

By Susanna Moon

Chicago, Jan. 7 - Parker Drilling Co. said it began a cash tender offer and consent solicitation for its outstanding 9 1/8% senior notes due 2018.

The total purchase price will be $1,061.98 for each $1,000 principal amount of notes tendered by 5 p.m. ET on Jan. 21. The total payment includes a consent payment of $30.00 per $1,000 principal amount.

Holders who tender their notes after the early deadline will receive the base payment of $1,031.98 for each $1,000 principal amount.

The offer will end at 11:59 p.m. ET on Feb. 4.

Tendered notes may be withdrawn and consents may be revoked by 5 p.m. ET on Jan. 21.

The company is soliciting consents to amend the notes to eliminate most of the covenants and default provisions, which requires the consent of the holders of a majority of the outstanding principal amount of notes.

Holders who tender their notes will be deemed to have consented to the proposed amendments.

The tender offer is conditioned on the completion of a capital markets transaction with enough proceeds, together with cash on hand and borrowings under the company's credit facility, to fund the offer.

BofA Merrill Lynch (888 292-0070 or collect 980 387-3907) is the dealer manager. D.F. King & Co., Inc. (212 269-5550 for banks and brokers only or 800 628-8536) is the information agent.

Parker Drilling is a Houston-based provider of contract drilling and drilling-related services.

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