By Paul A. Harris
Portland, Ore., Aug. 7 – Valaris Ltd. priced an upsized $400 million add-on to the Valaris Finance Co. LLC 8 3/8% senior secured second-lien notes due April 30, 2030 (B2/BB) at 100.75 to yield 8.173% in a Monday drive-by, according to market sources.
The issue price came at the rich end of the 100.25 to 100.75 price talk. Initial talk was in the par area.
Deutsche Bank Securities Inc. was the lead.
The offshore drilling services company plans to use the proceeds to fund the purchase of drillships Valaris DS-13 and Valaris DS-14 for $337 million, and for general corporate purposes. In the event that the purchases of either one or both drillships fails to close, proceeds will be used for general corporate purposes.
The add-on notes will immediately become fungible with original notes.
Valaris is registered in Hamilton, Bermuda.
| Issuer: | Valaris Finance Co. LLC
|
| Amount: | $400 million
|
| Maturity: | April 30, 2030
|
| Security description: | Senior notes
|
| Coupon: | 8 3/8%
|
| Bookrunner: | Deutsche Bank Securities Inc.
|
| Price: | 100.75
|
| Yield: | 8.173%
|
| Spread: | Treasuries plus 396 bps
|
| First call: | April 30, 2026 at 104.188
|
| Trade date: | Aug. 7
|
| Settlement date: | Aug. 21
|
| Ratings: | Moody’s: B2
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 100.25 to 100.75
|
| Marketing: | Drive-by
|
| Original issue: | $700 million priced in April 2023
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
