Dresser $200 million add-on could price Wednesday, via Morgan Stanley

By Paul A. Harris

St. Louis, Mo., March 12 - Dresser, Inc. will price a drive-by $200 million add-on to its 9 3/8% senior subordinated notes due April 15, 2011 (B2/B) on Wednesday or Thursday, according to a syndicate source.

Morgan Stanley is bookrunner. Credit Suisse First Boston is a co-lead.

Proceeds will be used repay a portion of the company's outstanding term loans under its credit facility.

Official price talk is 8 7/8%-9%, according to the syndicate source.

The original offering of $300 million priced April 4, 2001 and is callable on April 15, 2006 at 104.688, in 2007 at 103.125, 2008 at 101.563, par on April 15, 2009 and thereafter. The notes contain an equity clawback until April 15, 2004 for 35% at 109.375.

A conference call is scheduled for Wednesday, according to the source, who added that the add-on will price thereafter.

The Addison, Tex.-based company designs, manufactures and markets equipment for the energy industry.

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