By Paul A. Harris
St. Louis, Jan. 24 - Allis-Chalmers Energy Inc. priced an upsized $250 million issue of 10-year senior notes (B3/B) at par to yield 8½% on Wednesday, according to an informed source.
The yield came on the tight end of the 8 5/8% area price talk.
The source said that the order book was more than five times oversubscribed for the deal, which was upsized from $225 million.
RBC Capital Markets ran the books for the notes, which were issued via Rule 144A with registration rights and via Regulation S. Morgan Joseph was the co-manager.
Proceeds will be used to repay a portion of the debt outstanding under its $300 million bridge loan facility, which was incurred to finance Allis-Chalmers' recent acquisition of substantially all the assets of Oil & Gas Rental Services, Inc.
The issuer is a Houston-based oilfield services company.
| Issuer: | Allis-Chalmers Energy Inc.
|
| Amount: | $250 million (increased from $225 million)
|
| Maturity: | March 1, 2017
|
| Security description: | Senior notes
|
| Bookrunner: | RBC Capital Markets
|
| Co-manager: | Morgan Joseph
|
| Coupon: | 8½%
|
| Price: | Par
|
| Yield: | 8½%
|
| Spread: | 369 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until March 1, 2012, then at 104.25, 102.833, 101.417, par on and after March 1, 2015
|
| Equity clawback: | Until March 1, 2010 for 35% at 108.50
|
| Trade date: | Jan. 24
|
| Settlement date: | Jan. 29
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A with registration rights/Regulation S
|
| Price talk: | 8 5/8% area
|
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