By Paul A. Harris
Portland, Ore., Sept. 25 – Basic Energy Services, Inc. priced a $300 million issue of 10¾% five-year senior secured notes (B3/B) at 99.042 to yield 11% on Tuesday, according to market sources.
The yield printed on top of initial talk in the 11% area.
The company postponed the deal last March when it found the availability of attractive rates and flexibility on the part of bond buyers lacking, according to a company statement issued at that time.
BofA Merrill Lynch was the left bookrunner. UBS Securities LLC and Morgan Stanley & Co. LLC were the joint bookrunners.
The Fort Worth oilfield services provider plans to use the proceeds to repay debt under the company’s existing second amended and restated term loan, as well as to repay its asset-based secured revolver and for general corporate purposes.
| Issuer: | Basic Energy Services, Inc.
|
| Amount: | $300 million
|
| Maturity: | Oct. 15, 2023
|
| Securities: | Senior secured notes
|
| Left bookrunner: | BofA Merrill Lynch
|
| Joint bookrunners: | UBS Securities LLC, Morgan Stanley & Co. LLC
|
| Co-managers: | PNC Capital Markets LLC, Capital One Securities Inc., Johnson Rice, Seaport, Simmons, Stephens
|
| Coupon: | 10¾%
|
| Price: | 99.042
|
| Yield: | 11%
|
| Spread: | 801 bps
|
| Call protection: | Two years
|
| Trade date: | Sept. 25
|
| Settlement date: | Oct. 2
|
| Ratings: | Moody's: B3
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Initial price talk: | 11% area
|
| Marketing: | Roadshow
|
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