Key Energy Services gets tenders for $421.43 million of 8 3/8% notes

By Marisa Wong

Madison, Wis., March 16 - Key Energy Services, Inc. announced that a total of $421,427,000 principal amount, or 99.16%, of its $425 million of outstanding 8 3/8% senior notes due 2014 were tendered as of midnight ET on March 14, the expiration date of the cash tender offer for the notes.

As previously reported, Key Energy obtained tenders and consents from holders of $421,322,000, or 99.1%, of its 8 3/8% notes by 5 p.m. ET on Feb. 28, the consent expiration date. The company received the necessary consents to enter into a supplemental indenture to eliminate substantially all of the restrictive covenants and some event-of-default provisions.

The tender offer and consent solicitation began on Feb. 14.

The company purchased notes tendered by the consent expiration date on March 4 for a total consideration of $1,090 per $1,000 principal amount, which includes a $30 consent payment.

Key Energy accepted notes tendered after the consent expiration date for purchase at a price of $1,060 per $1,000 principal amount, which is equal to the total consideration less the consent payment.

Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-2147) was the dealer manager and solicitation agent. Global Bondholder Services Corp. (866 387-1500 or 212 430-3774) was the information agent.

Key Energy Services is a rig-based well services provider based in Houston.

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