Allis-Chalmers Energy to launch $80 million add-on to 9% notes due January 2014 on Tuesday via RBC

By Paul A. Harris

St. Louis, July 27 - Allis-Chalmers Energy Inc. will launch an $80 million add-on to its 9% senior notes due Jan. 15, 2014 (B3/B-) on Tuesday, according to an informed source.

Pricing is expected to take place during the week of Aug. 7.

RBC Capital Markets has the books for the notes, which will be marketed via Rule 144A with registration rights and via Regulation S.

The notes become callable after Jan. 15, 2010 at 104.50.

Proceeds, along with a concurrent follow-on equity offering of 2.5 million shares, will be used to fund a portion of the pending acquisition of Argentina-based DLS Drilling, Logistics & Services Corp., to repay existing debt and for general corporate purposes.

The original $160 million issue priced at par on Jan. 12, 2006.

Allis-Chalmers Energy is a Houston-based provider of oilfield services and equipment to oil and gas exploration and production companies.

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