Vantage Drilling talks $600 million 10-year notes at 7¼% area yield

By Paul A. Harris

Portland, Ore., March 20 - Vantage Drilling talked its $600 million offering of 10-year senior secured first-lien notes with a yield in the 7¼% area on Wednesday, according to a syndicate source.

The official talk represents the tight end of the initial 7¼% to 7½% guidance.

The books were scheduled to close at 5 p.m. ET on Wednesday, and the deal is set to price on Thursday morning.

Citigroup Global Markets is the left bookrunner. BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Jefferies & Co. and RBC Capital Markets are the joint bookrunners.

Clarkson, FBR, Global Hunter Securities, J.P. Morgan Securities LLC, Johnson Rice, Pareto Securities and RS Platou are the co-managers.

The Rule 144A with registration rights notes come with five years of call protection.

Proceeds, along with proceeds from a new term loan, will be used to fund a tender offer for the company's 11½% senior secured notes due 2015.

The issuing entity will be Offshore Group Investment Ltd., a subsidiary of the Houston-based offshore drilling contractor.

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