By Lisa Kerner
Charlotte, N.C., Sept. 28 - Forbes Energy Services Ltd. subsidiaries Forbes Energy Services LLC and Forbes Energy Capital Inc. agreed on Friday to sell $20 million total principal amount of first-lien floating-rate notes due 2014 to Goldman, Sachs & Co. in a private placement.
Interest equals six-month Libor plus 800 basis points.
The notes are callable at 103 in year two, 102 in year three, 101 in year four and at par after that.
The proceeds will be used to repay outstanding debt and terminate Forbes' existing revolving credit facility, according to a Forbes news release.
Forbes Energy Services, an Alice, Texas-based independent oilfield services company, expects the transaction to close on or about Wednesday.
| Issuers: | Forbes Energy Services LLC and Forbes Energy Capital Inc.
|
| Guarantor: | Forbes Energy Services Ltd.
|
| Issue: | First-lien floating-rate notes
|
| Amount: | $20 million
|
| Maturity: | 2014
|
| Coupon: | Libor plus 800 bps
|
| Price: | Par
|
| Call option: | At 103 in year two, 102 in year three, 101 in year four and then at par
|
| Pricing date: | Sept. 25
|
| Settlement date: | Sept. 30
|
| Distribution: | Private placement
|
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