Published on 10/8/2009 in the Prospect News High Yield Daily.
New Issue: Hercules Offshore prices $300 million 10½% eight-year notes at 97.383 to yield 11%
By Paul A. Harris
St. Louis, Oct. 8 - Hercules Offshore, Inc. priced a $300 million issue of 10½% eight-year senior secured notes (B2/B/) at 97.383 to yield 11% on Thursday, according to an informed source.
The yield printed on top of yield talk, while the discount came in line with the two points to three points discount talk.
UBS Investment Bank was the left lead bookrunner. Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and Morgan Stanley & Co. Inc. were joint bookrunners.
Co-managers were Capital One Southcoast, Credit Suisse, Goldman, Sachs & Co, Mizuho Securities USA Inc., Comerica Securities, Fortis Securities LLC and Natixis Bleichroeder.
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.
| Issuer: | Hercules Offshore, Inc.
|
| Face amount: | $300 million
|
| Proceeds: | $292.149 million
|
| Maturity: | Oct. 15, 2017
|
| Securities: | Senior secured notes
|
| Left bookrunner: | UBS Investment Bank
|
| Joint bookrunners: | Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Morgan Stanley & Co. Inc.
|
| Co-managers: | Capital One Southcoast, Credit Suisse, Goldman, Sachs & Co, Mizuho Securities USA Inc., Comerica Securities, Fortis Securities LLC, Natixis Bleichroeder
|
| Coupon: | 10½%
|
| Price: | 97.383
|
| Yield: | 11%
|
| Spread: | 778.9 bps
|
| Call features: | Callable on Oct. 15, 2013 at 105.25, 102.625, 101.3125, par on and after Oct. 15, 2016
|
| Equity clawback: | 35% at 110.50 until Oct. 15, 2012
|
| Trade date: | Oct. 8
|
| Settlement date: | Oct. 20
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A/Regulation S with registration rights
|
| Price talk: | 11% area all-in yield with about 2 points to 3 points of OID
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
