By Cristal Cody
Tupelo, Miss., Nov. 7 – Patterson-UTI Energy, Inc. priced $350 million of 5.15% 10-year senior notes (Baa2/BBB) on Thursday at a spread of 325 basis points over Treasuries, according to an FWP filing with the Securities and Exchange Commission.
The notes priced at 99.784 to yield 5.178%.
The deal was downsized from $400 million.
Initial price talk was in the Treasuries plus 300 bps area.
Goldman Sachs & Co. LLC, RBC Capital Markets LLC, Scotia Capital (USA) Inc. and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used to repay in full the company’s 4.27% series B senior notes due June 14, 2022, to pay down borrowings under its term loan facility and for general corporate purposes.
Based in Houston, Patterson-UTI provides onshore contract drilling and pressure pumping services to exploration and production companies.
| Issuer: | Patterson-UTI Energy, Inc.
|
| Amount: | $350 million
|
| Description: | Senior notes
|
| Maturity: | Nov. 15, 2029
|
| Bookrunners: | Goldman Sachs & Co. LLC, RBC Capital Markets LLC, Scotia Capital (USA) Inc. and Wells Fargo Securities LLC
|
| Senior co-manager: | U.S. Bancorp Investments Inc.
|
| Co-manager: | BofA Securities, Inc.
|
| Coupon: | 5.15%
|
| Price: | 99.784
|
| Yield: | 5.178%
|
| Spread: | Treasuries plus 325 bps
|
| Call features: | Make-whole call before Aug. 15, 2029 at Treasuries plus 50 bps; thereafter at par
|
| Trade date: | Nov. 7
|
| Settlement date: | Nov. 15
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Distribution: | SEC Registered
|
| Marketing: | Fixed income investor calls
|
| Price guidance: | Treasuries plus 300 bps area
|
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