New Issue: Ausdrill prices $300 million seven-year notes at par to yield 6 7/8%

By Paul A. Harris

Portland, Ore., Nov. 2 - Australia's Ausdrill Finance Pty Ltd. priced a $300 million issue of seven-year guaranteed senior notes (Ba3/BB/) at par to yield 6 7/8% on Friday, according to a syndicate source.

The yield printed at the tight end of price talk that had been set in the 7% area.

Morgan Stanley & Co. was the left bookrunner. Deutsche Bank Securities Inc. and Standard Chartered Bank were the joint bookrunners.

The Kewdale, Western Australia-based mineral exploration company plans to use the proceeds to repay the term loan portion of its credit facility, with any remaining proceeds to be used for general corporate purposes, including a temporary pay down of its revolver.

Issuer:	Ausdrill Finance Pty Ltd.
Amount:	$300 million
Maturity:	Nov. 1, 2019
Securities:	Guaranteed senior notes
Left bookrunner:	Morgan Stanley & Co. LLC
Joint bookrunners:	Deutsche Bank Securities Inc., Standard Chartered Bank
Coupon:	6 7/8%
Price:	Par
Yield:	6 7/8%
Spread:	571 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Nov. 1, 2015, then callable at 105.156, 103.438, 101.719, par on and after Nov. 1, 2018
Equity clawback:	35% at 106.875 until Nov. 1, 2015
Trade date:	Nov. 2
Settlement date:	Nov. 9
Ratings:	Moody's: Ba3
	Standard & Poor's: BB
Distribution:	Rule 144A and Regulation S for life
Price talk:	7% area
Marketing:	Roadshow

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