Hercules Offshore talks $300 million eight-year notes to yield 11% area, about 2 to 3 points OID

By Paul A. Harris

St. Louis, Oct. 7 - Hercules Offshore, Inc. set price talk for its $300 million offering of eight-year senior secured notes (B2/B) with an 11% area all-in yield at a discount of approximately 2 points to 3 points, an informed source said on Wednesday.

The books close at noon ET on Thursday.

UBS Investment Bank is the left lead bookrunner for the Rule 144A and Regulation S with registration rights offering. Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and Morgan Stanley & Co. Inc. are joint bookrunners.

The notes come with four years of call protection.

Proceeds will be used to repay a portion of the debt outstanding under the company's term loan.

Hercules is a Houston-based provider of drilling services for oil and gas production.

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