Grant Prideco tenders for 9% notes

New York, July 13 - Grant Prideco, Inc. said it has begun a cash tender offer and consent solicitation for its 9% senior notes due 2009.

Holders who tender by the consent deadline of 5 p.m. ET on July 26 will receive a price based on a fixed spread of 50 basis points over the yield to maturity of the 2 7/8% U.S. Treasury note due Nov. 30, 2006.

Pricing will be fixed at 2 p.m. ET on July 26.

Grant Prideco will also pay accrued interest up to but excluding the date of payment.

The company is also soliciting consents to amend the note indenture in order to eliminate substantially all of the restrictive covenants. The total price includes a $30.00 per $1,000 consent payment that will only be paid to those who tender by the consent deadline.

The tender ends at midnight ET on Aug. 9.

The Houston-based drilling services company said the tender is subject to conditions including the receipt of tenders form holders of a majority of the notes, execution of a supplemental indenture, the receipt of sufficient proceeds from a debt financing to fund the tender and other conditions.

Banc of America Securities LLC is exclusive dealer manager and solicitation agent (888 292-0070 or call collect 704 388-9217).

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