By Paul A. Harris
St. Louis, Aug. 8 - Allis-Chalmers Energy Inc. priced an upsized $95 million add-on to its 9% senior notes due Jan. 15, 2014 (B3/B-) at par to yield 9% on Tuesday, according to an informed source.
The dollar price came at the wide end of the 100.00 to 100.50 price talk.
RBC Capital Markets was the bookrunner for the add-on, which was priced via Rule 144A with registration rights and via Regulation S.
In addition, the company sold 3 million shares in a concurrent equity offering.
Proceeds will be used to help fund the acquisition of DLS Drilling, Logistics & Services Corp., to repay existing debt and for general corporate purposes.
The add-on was upsized from $80 million.
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.
| Issuer: | Allis-Chalmers Energy Inc.
|
| Amount: | $95 million (increased from $80 million)
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| Maturity: | Jan. 15, 2014
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| Security description: | Add-on to 9% senior notes
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| Bookrunner: | RBC Capital Markets
|
| Coupon: | 9%
|
| Price: | Par
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| Yield: | 9%
|
| Spread: | 412 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Jan. 15, 2010, then callable at 104.50, 102.25, par on and after Jan. 15, 2012
|
| Equity clawback: | Until Jan 15, 2009 for 35% at 109.00
|
| Trade date: | Aug. 8
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| Settlement date: | Aug. 14 flat
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| Ratings: | Moody's: B3
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| Standard & Poor's: B-
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| Distribution: | Rule 144A with registration rights and Regulation S
|
| Price talk: | 100.00 to 100.50
|
| Original issue: | $160 million issue priced at par on Jan. 12, 2006
|
| Total issue size: | $255 million
|
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