Grant Prideco gets required consents for 9% notes, sets pricing

By Jennifer Chiou

New York, July 26 - Grant Prideco, Inc. said it received tenders for $174,905,000 or 99.5% of its outstanding 9% senior notes due 2009 as of 5 p.m. ET on July 26, the consent deadline.

The company also announced that for each $1,000 principal amount of notes it will pay $1,103.24, including a $30.00 consent payment.

The company referenced the 2 7/8% Treasury due Nov. 30, 2006 plus 50 basis points to determine the payout. The reference yield and the tender offer yield are 3.909% and 4.409%, respectively.

Noteholders will also receive accrued interest up to but not including the initial payment date - projected to be July 27.

Those who tender their notes after the consent deadline but before midnight ET on Aug. 9 will not receive the consent payment, but will also receive accrued interest.

The company originally announced its tender offer and consent solicitation to eliminate substantially all restrictive covenants on July 13.

Grant Prideco's offer is conditioned upon a majority of the notes being tendered, an executed supplemental indenture and enough proceeds from a debt financing to cover the offer.

Banc of America Securities LLC is dealer manager and solicitation agent (888 292-0070 or call collect 704 388-9217).

Houston-based Grant Prideco manufactures drill stem technology.

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