By Paul A. Harris
Portland, Ore., Jan. 11 – Ensco plc doubled the size of its deal to $1 billion from $500 million and priced its new issue of eight-year senior notes (Ba3/BB-) at par to yield 7¾%, according to market sources.
The yield printed 12.5 basis points inside of yield talk in the 8% area.
Initial guidance was 8% to 8½%, a trader said.
The deal came with an investment grade-style covenant package.
Deutsche Bank Securities Inc. and Citigroup Global Markets Inc. were the global coordinators and bookrunners.
BNP Paribas Securities Corp., BofA Merrill Lynch, DNB Markets Inc., HSBC Securities (USA) Inc. and Morgan Stanley & Co. LLC were the joint bookrunners.
The London-based offshore drilling contractor plans to use the proceeds to fund tender offers for the 8½% senior notes due 2019 and 6 7/8% senior notes due 2020 issued by wholly owned subsidiary Pride International, Inc. and for the Ensco 4.7% senior notes due 2021. The size of the tenders will be upsized proportionally to the $500 million increase in Thursday sale of the new 7¾% notes.
| Issuer: | Ensco plc
|
| Amount: | $1 billion, increased from $500 million
|
| Maturity: | Feb. 1, 2026
|
| Securities: | Senior notes
|
| Global coordinators: | Deutsche Bank Securities Inc., Citigroup Global Markets Inc.
|
| Joint bookrunners: | BNP Paribas Securities Corp., BofA Merrill Lynch, DNB Markets Inc., HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC
|
| Co-manager: | SEB
|
| Coupon: | 7¾%
|
| Price: | Par
|
| Yield: | 7¾%
|
| Spread: | 524 bps
|
| Call protection: | Non-callable
|
| Trade date: | Jan. 11
|
| Settlement date: | Jan. 26
|
| Ratings: | Moody's: B3
|
| S&P: BB-
|
| Distribution: | SEC registered
|
| Price talk: | 8% area
|
| Marketing: | Investor call
|
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