By Paul A. Harris
St. Louis, Jan. 12 - Allis-Chalmers Energy Inc. priced an upsized $160 million issue of eight-year senior notes (B3/B-) at par on Thursday to yield 9%, according to a market source.
The yield came at the wide end of the 8¾% to 9% price talk.
RBC Capital Markets ran the books for the issue, which was sold via Rule 144A with registration rights and via Regulation S. Morgan Keegan was the co-manager.
Proceeds will be used to fund the acquisition of Specialty Rental Tools Inc. and to repay existing debt.
The issuer is a Houston-based provider of oilfield services and equipment to oil and gas exploration and production companies.
| Issuer: | Allis-Chalmers Energy Inc.
|
| Amount: | $160 million (increased from $150 million)
|
| Maturity: | Jan. 15, 2014
|
| Security description: | Senior notes
|
| Bookrunner: | RBC Capital Markets
|
| Co-manager: | Morgan Keegan
|
| Coupon: | 9%
|
| Price: | Par
|
| Yield: | 9%
|
| Spread: | 458 basis points
|
| Call features: | Callable after Jan. 15, 2010 at 104.50, 102.25, par on and after Jan. 15, 2012
|
| Trade date: | Jan. 12
|
| Settlement date: | Jan. 18
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A with registration rights and Regulation S
|
| Price talk: | 8¾%-9%
|
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