By Paul A. Harris
Portland, Ore., Dec. 6 – Rowan Cos., Inc. and Rowan Cos. plc priced an upsized $500 million issue of non-callable 8.5-year senior notes (B1/B+) at par to yield 7 3/8% on Tuesday, according to a market source.
The issue size was increased from $400 million.
The yield printed 12.5 basis points beneath the tight end of the 7½% to 7¾% yield talk. Initial guidance was in the 8% area.
The deal went very well and played to an order book that was five-times oversubscribed, a trader said.
BofA Merrill Lynch, Barclays, DNB Markets, Wells Fargo Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., MUFG, HSBC Securities (USA) Inc. and Morgan Stanley & Co. LLC were the joint bookrunners.
The Houston-based contract drilling services provider plans to use the proceeds to help fund tender offers for up to $750 million of its 5% notes due 2017, its 7 7/8% notes due 2019, its 4 7/8% notes due 2022 and its 4¾% notes due 2024.
| Issuers: | Rowan Cos., Inc. and Rowan Cos. plc
|
| Amount: | $500 million, increased from $400 million
|
| Maturity: | June 15, 2025
|
| Securities: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, Barclays, DNB Markets, Wells Fargo Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., MUFG, HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC
|
| Coupon: | 7 3/8%
|
| Price: | Par
|
| Yield: | 7 3/8%
|
| Call protection: | Non-callable
|
| Trade date: | Dec. 6
|
| Settlement date: | Dec. 19
|
| Ratings: | Moody's: B1
|
| S&P: B+
|
| Distribution: | SEC registered
|
| Price talk: | 7½% to 7¾%
|
| Marketing: | Roadshow
|
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