By Paul A. Harris
Portland, Ore., Jan. 27 – Trinidad Drilling Ltd. priced a $350 million issue of eight-year senior notes (Caa1/BB-) at par to yield 6 5/8% on Friday, according to a syndicate source.
The yield came at the tight end of yield talk in the 6¾% area.
Timing on the deal was accelerated; it was previously expected to remain in the market into the week ahead.
Joint bookrunner RBC Capital Markets LLC will bill and deliver for the Rule 144A and Regulation S for life notes offering. Wells Fargo Securities LLC is also a joint bookrunner.
The Calgary, Alta.-based oilfield services company plans to use the proceeds, along with proceeds from its equity offering, to fund the repurchase and/or redemption of its $450 million of 7 7/8% senior notes due 2019.
| Issuer: | Trinidad Drilling Ltd.
|
| Amount: | $350 million
|
| Maturity: | Feb. 15, 2025
|
| Securities: | Senior notes
|
| Bookrunners: | RBC Capital Markets LLC (bill and deliver), Wells Fargo Securities LLC
|
| Joint lead arrangers: | HSBC, Scotia Capital, TD Securities
|
| Co-managers: | Credit Suisse Securities (USA) LLC, Raymond James
|
| Coupon: | 6 5/8%
|
| Price: | Par
|
| Yield: | 6 5/8%
|
| Spread: | 422 bps
|
| Call: | Make-whole call a Treasuries plus 50 bps until Feb. 15, 2020, then callable at 104.969
|
| Equity clawback: | 35% at 106.625 until Feb. 15, 2020
|
| Trade date: | Jan. 27
|
| Settlement date: | Feb. 8
|
| Ratings: | Moody's: Caa1
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6¾% area
|
| Marketing: | Roadshow
|
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