By Cristal Cody
Tupelo, Miss., Jan. 10 – Patterson-UTI Energy, Inc. priced an upsized $525 million of 3.95% 10-year senior notes (Baa2/BBB) on Wednesday at a spread of 140 basis points over Treasuries in a Rule 144A and Regulation S offering, according to a market source and a company news release.
The notes priced on the tight side of guidance that was in the Treasuries plus 145 bps area. The deal was upsized from $500 million.
BofA Merrill Lynch, Goldman Sachs & Co. and Wells Fargo Securities, LLC were the lead managers.
The company held fixed income investor calls on Monday and Tuesday for the offering.
The notes initially will be guaranteed on a senior unsecured basis by each of the company's domestic subsidiaries that are guarantors under its credit agreement.
Proceeds will be used to repay debt under the company’s credit agreement and for general corporate purposes.
Houston-based Patterson-UTI provides onshore contract drilling and pressure pumping services to exploration and production companies.
| Issuer: | Patterson-UTI Energy, Inc.
|
| Guarantors: | Company's domestic subsidiaries that are guarantors under its credit agreement
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| Amount: | $525 million
|
| Description: | Senior notes
|
| Maturity: | Feb. 1, 2028
|
| Bookrunners: | BofA Merrill Lynch, Goldman Sachs & Co. and Wells Fargo Securities LLC
|
| Coupon: | 3.95%
|
| Spread: | Treasuries plus 140 bps
|
| Trade date: | Jan. 10
|
| Settlement date: | Jan. 19
|
| Ratings: | Moody's: Baa2
|
| S&P: BBB
|
| Distribution: | Rule 144A, Regulation S
|
| Price talk: | Treasuries plus 145 bps area
|
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