By Paul A. Harris
Portland, Ore., March 23 – KCA Deutag UK Finance plc priced an upsized $400 million issue of five-year senior secured notes (B3/B-) at par to yield 9 5/8% on Friday, according to a syndicate source.
The issue size was increased from $375 million.
The yield printed at the tight end of yield talk in the 9¾% area.
Citigroup Global Markets Inc. was the left bookrunner. HSBC, First Abu Dhabi Bank, Goldman Sachs & Co. and J.P. Morgan Securities LLC were the joint bookrunners.
The Aberdeen, U.K., drilling and engineering contractor for onshore and offshore oil, gas and geothermal markets plans to use the proceeds to fund its acquisition of certain of Dalma Energy LLC’s subsidiaries and certain rigs located in Saudi Arabia, and other assets, and to refinance Dalma Energy debt.
| Issuer: | KCA Deutag UK Finance plc
|
| Amount: | $400 million, increased from $375 million
|
| Maturity: | April 1, 2023
|
| Securities: | Senior secured notes
|
| Left bookrunner: | Citigroup Global Markets Inc.
|
| Joint bookrunners: | HSBC, First Abu Dhabi Bank, Goldman Sachs & Co., J.P. Morgan Securities LLC
|
| Coupon: | 9 5/8%
|
| Price: | Par
|
| Yield: | 9 5/8%
|
| Spread: | 700 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until April 1, 2020, then callable at 104.813
|
| Equity clawback: | 35% at 109.625 until April 1, 2020
|
| Trade date: | March 23
|
| Settlement date: | April 9
|
| Ratings: | Moody's: B3
|
| S&P: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 9¾% area
|
| Marketing: | Roadshow
|
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