By Paul A. Harris
St. Louis, Feb. 24 - RDS Ultra-Deepwater, Ltd. priced an upsized $270 million issue of 11 7/8% seven-year senior secured notes (B3/B-/) at 97.131 to yield 12½% on Wednesday, according to an informed source.
The yield printed on top of the yield talk. The original issue discount came in line with the approximately 3 points of discount talk.
Jefferies & Co. ran the books for the deal, which was upsized from $260 million.
Proceeds will be used to purchase PetroRig III, a sixth generation ultra-deepwater semi-submersible drilling rig.
The company will enter into a long-term charter contract for the lease of the rig with Pemex Exploracion y Produccion, a wholly owned subsidiary of Petroleos Mexicanos, the national petroleum company of Mexico.
RDS Ultra-Deepwater is a special purpose finance subsidiary of Portuguese parent Rubicon Drilling Services-Alguer de Equipamentos Tecnologicos, Unipessoal, LDA.
| Issuer: | RDS Ultra-Deepwater, Ltd.
|
| Amount: | $270 million, increased from $260 million
|
| Proceeds: | $262,254,000 (approximate)
|
| Maturity: | March 15, 2017
|
| Security description: | Senior secured notes
|
| Bookrunner: | Jefferies & Co.
|
| Co-manager: | BBVA Securities Inc.
|
| Coupon: | 11 7/8%
|
| Price: | 97.131
|
| Yield: | 12½%
|
| Call features: | Make-whole call at Treasuries plus 50 bps until March 15, 2014, then callable at 105.938, 102.969, par on and after March 15, 2016
|
| Equity clawback: | 35% at 111.875% until March 15, 2014
|
| Change-of-control put: | 101%
|
| Trade date: | Feb. 24
|
| Settlement date: | March 10
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A /Regulation S for life
|
| Price talk: | 12½% area yield with approximately 3 points OID
|
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