Diamond Offshore to price $500 million seven-year second-lien notes in Tuesday drive-by

By Paul A. Harris

Portland, Ore., Sept. 12 – Diamond Offshore Drilling, Inc. plans to price a $500 million offering of Diamond Foreign Asset Co. and Diamond Finance, LLC seven-year second-lien senior secured notes in a Tuesday drive-by, according to market sources.

The notes are in the market with initial guidance in the 9% area, according to a sellside source, who added that there was $350 million of reverse inquiry in the deal at the time it was announced to the market.

The Rule 144A and Regulation S for life notes are subject to their first call in three years at par plus 50% of the coupon.

Goldman Sachs & Co. LLC is the left bookrunner. HSBC Securities (USA) Inc., Barclays and Capital One Securities Inc. are the joint bookrunners.

Citigroup Global Markets Inc., Pickering Energy Partners, Fearnley, Clarksons, Raymond James & Associates, DNB Markets Inc., Sparebank and BTIG LLC are the co-managers.

The Katy, Tex.-based drilling contractor plans to use the proceeds to pay off its $100 million senior secured term loan, its senior secured first-lien PIK toggle notes due 2027 and its senior secured revolver, with the remainder, if any, to be used for general corporate purposes, which may include working capital, capital expenditures, share repurchases and acquisitions.

© 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.