New Issue: Atwood Oceanics sells upsized $450 million eight-year notes at par to yield 6½%

By Paul A. Harris

Portland, Ore., Jan. 12 - Atwood Oceanics, Inc. priced an upsized $450 million issue of eight-year senior notes (Ba3/BB/) at par to yield 6½% on Thursday, according to an informed source.

The yield printed at the tight end of yield talk, which had been set in the 6 5/8% area.

Credit Suisse Securities (USA) LLC, Barclays Capital Inc. and Wells Fargo Securities, LLC were the joint bookrunners for the issue, which was upsized from $400 million.

The Houston-based offshore drilling, exploration and development company plans to use the proceeds to partially pay down its existing debt.

The upsize proceeds will be applied to the company's revolver debt.

Issuer:	Atwood Oceanics, Inc.
Amount:	$450 million, increased from $400 million
Maturity:	Feb. 1, 2020
Securities:	Senior notes
Bookrunners:	Credit Suisse Securities (USA) LLC, Barclays Capital Inc., Wells Fargo Securities, LLC
Senior co-managers:	DNB Markets, Inc., Credit Agricole Securities (USA) Inc., BNP Paribas Securities Corp., Natixis Securities Americas LLC, Nordea Bank Danmark A/S, UniCredit Capital Markets LLC
Co-managers:	HSBC Securities (USA) Inc., ING Financial Markets LLC, Morgan Keegan & Co. Inc.
Coupon:	6½%
Price:	Par
Yield:	6½%
Spread:	497 bps
Call features:	Callable on Feb. 1, 2016 at 103.25, 101.625, par on and after Feb. 1, 2018
Equity clawback:	35% at 106.5 until Feb. 1, 2015
Change-of-control put:	101%
Trade date:	Jan. 12
Settlement date:	Jan. 18
Ratings:	Moody's: Ba3
	Standard & Poor's: BB
Distribution:	SEC registered
Price talk:	6 5/8% area
Marketing:	Brief roadshow

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