Allis-Chalmers Energy talks $150 million eight-year notes 8¾%-9%, pricing Thursday

By Paul A. Harris

St. Louis, Jan. 10 - Allis-Chalmers Energy Inc. talked its $150 million offering of eight-year senior notes at 8¾% to 9% on Tuesday, according to an informed source.

The offering is expected to price on Thursday.

RBC Capital Markets is the bookrunner for the notes, which are being sold via Rule 144A with registration rights and Regulation S. Morgan Keegan is the co-manager.

The notes come with four years of call protection.

Proceeds will be used to fund the acquisition of Specialty Rental Tools, Inc. and to repay existing debt.

Moody's Investors Service assigns its B3 rating to the notes. Standard & Poor's rates the notes B-.

The prospective issuer is a Houston-based provider of oilfield services and equipment to oil and gas exploration and production companies.

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