By Devika Patel
Knoxville, Tenn., Jan. 11 – Patterson-UTI Energy, Inc. offered further details about an upsized $525 million sale of 3.95% 10-year senior notes (Baa2/BBB/) that priced on Wednesday at a spread of 140 basis points over Treasuries in a Rule 144A and Regulation S offering, according to an 8-K filed with the Securities and Exchange Commission.
The notes priced at 99.925 to yield 3.959%.
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., Wells Fargo Securities LLC and Scotia Capital (USA) Inc. were the bookrunners.
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.
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| Guarantors: | Company's domestic subsidiaries that are guarantors under its credit agreement
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| Amount: | $525 million
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| Description: | Senior notes
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| Maturity: | Feb. 1, 2028
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| Bookrunners: | BofA Merrill Lynch, Goldman Sachs & Co., Wells Fargo Securities LLC and Scotia Capital (USA) Inc.
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| Coupon: | 3.95%
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| Price: | 99.925
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| Yield: | 3.959%
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| Spread: | Treasuries plus 140 bps
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| Call: | The greater of a make-whole call at Treasuries plus 25 bps or par until Nov. 1, 2027, then a par call
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| Trade date: | Jan. 10
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| Settlement date: | Jan. 19
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| Ratings: | Moody's: Baa2
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| S&P: BBB
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| Distribution: | Rule 144A, Regulation S
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| Price talk: | Treasuries plus 145 bps area
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