Key Energy to redeem 14% notes

New York, Dec. 4 - Key Energy Services Inc. (Ba2/BB) said it will redeem all $97.5 million principal amount of its 14% senior subordinated notes due 2009 on Jan. 15. The notes will be redeemed at a price of 107% of the outstanding principal amount, plus accrued and unpaid interest to the redemption date, for a total cash outlay by the company of $111.15 million.

Key, a Midland, Texas-based energy services company, said that the retirement of the notes will result in annual interest expense savings of approximately $14 million.

The company expects to use its cash on hand and borrowings under its revolving credit facility to redeem the 14% notes.

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