IronGate talks $180 million five-year notes at discount to yield 11½%

By Paul A. Harris

Portland, Ore., June 13 - IronGate Energy Services, LLC talked its $180 million offering of five-year senior secured notes to price with an original issue discount of about 2 points and to yield 11½%, an informed source said on Thursday.

Books were scheduled to close at 4 p.m. ET on Thursday, and the deal was expected to price shortly thereafter. However no final terms were available late Thursday, according to market sources.

A buyside source professed the expectation that the deal has been pushed into Friday.

Jefferies LLC is the bookrunner.

The notes are in the market as a Regulation D private placement, but they will be automatically exchanged into Rule 144A and Regulation S notes upon closing.

The notes become callable after two years at par plus 75% of the coupon and after three years at par plus 50% of the coupon.

Proceeds will be used to fund the leveraged buyout of Archer Rental Tubular Division from Archer Ltd. by Clearlake Capital Group.

IronGate is a provider of rental and tubular services to energy exploration and production operators.

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