By Paul A. Harris
Portland, Ore., Jan. 27 – Trinidad Drilling Ltd. priced a $350 million issue of eight-year senior notes (Caa1/BB-) at par to yield 6 5/8% on Friday, according to a syndicate source.
The yield came at the tight end of yield talk in the 6¾% area.
Timing on the deal was accelerated; it was previously expected to remain in the market into the week ahead.
Joint bookrunner RBC Capital Markets LLC will bill and deliver for the Rule 144A and Regulation S for life notes offering. Wells Fargo Securities LLC is also a joint bookrunner.
The Calgary, Alta.-based oilfield services company plans to use the proceeds, along with proceeds from its equity offering, to fund the repurchase and/or redemption of its $450 million of 7 7/8% senior notes due 2019.
Issuer: | Trinidad Drilling Ltd.
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Amount: | $350 million
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Maturity: | Feb. 15, 2025
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Securities: | Senior notes
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Bookrunners: | RBC Capital Markets LLC (bill and deliver), Wells Fargo Securities LLC
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Joint lead arrangers: | HSBC, Scotia Capital, TD Securities
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Co-managers: | Credit Suisse Securities (USA) LLC, Raymond James
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Coupon: | 6 5/8%
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Price: | Par
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Yield: | 6 5/8%
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Spread: | 422 bps
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Call: | Make-whole call a Treasuries plus 50 bps until Feb. 15, 2020, then callable at 104.969
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Equity clawback: | 35% at 106.625 until Feb. 15, 2020
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Trade date: | Jan. 27
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Settlement date: | Feb. 8
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Ratings: | Moody's: Caa1
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| S&P: BB-
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Distribution: | Rule 144A and Regulation S for life
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Price talk: | 6¾% area
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Marketing: | Roadshow
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