Allis-Chalmers delays expiration of tender offer for 9%, 8½% notes

By Susanna Moon

Chicago, June 19 - Allis-Chalmers Energy Inc. said it extended the tender offer for its $255 million of 9% senior notes due Jan. 15, 2014 and $250 million of 8½% senior notes due March 1, 2017.

The offer will now expire at 5 p.m. ET on June 26, extended from June 18. The early participation deadline is also June 26.

As of Friday Allis-Chalmers had received tenders of $30,562,000 principal amount, or 11.99%, of the 9% notes and $44,200,000 principal amount, or 17.68%, of the 8.5% notes.

The company said on June 3 that it amended the amount of notes it will purchase. The company will buy up to $50 million of the 8½% notes, up from $25 million, and $75 million of the 9% notes, down from $100 million.

The purchase prices will be determined using a modified Dutch auction procedure.

For each $1,000 principal amount, the company will pay between $570 and $650 for the 9% notes and $520 to $600 for the 8½% notes, including a $20.00 early participation payment.

The total consideration will be determined using a base price plus a clearing premium not to exceed $80.00.

Allis-Chalmers said it also will pay accrued interest to the settlement date.

The offer began on May 20 and is conditioned on financing.

RBC Capital Markets Corp. (212 618-2204) is the dealer manager. Global Bondholder Services Corp. (866 470-3600 or call collect 212 430-3774) is the information agent and depositary.

Allis-Chalmers Houston-based oilfield services company.

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