By Paul A. Harris
Portland, Ore., April 5 – Ensign Drilling Inc. priced a $700 million issue of five-year senior notes (B2/BB-) at par to yield 9¼% on Friday, according to a syndicate source.
The yield printed at the wide end of the 9% to 9¼% yield talk.
The deal underwent covenant changes bearing primarily upon how the company may disburse cash and incur additional debt.
BMO Capital Markets Corp. was the left physical bookrunner. J.P. Morgan Securities LLC was the joint physical bookrunner.
Proceeds from the notes in addition to cash will be used to repay all outstanding loans under Ensign’s existing senior loan facility.
The Calgary-based oilfield services provider is a wholly-owned subsidiary of Ensign Energy Services Inc.
| Issuer: | Ensign Drilling Inc.
|
| Guarantor: | Ensign Energy Services Inc.
|
| Amount: | $700 million
|
| Maturity: | April 15, 2024
|
| Securities: | Senior notes
|
| Left physical books: | BMO Capital Markets Corp.
|
| Joint physical books: | J.P. Morgan Securities LLC
|
| Joint books: | Scotia
|
| Senior co-managers: | AltaCorp, HSBC, TD
|
| Coupon: | 9¼%
|
| Price: | Par
|
| Yield: | 9¼%
|
| First call: | Treasuries plus 50 bps until April 15, 2021 then callable at 104.625
|
| Equity clawback: | 35% at 109.25 until April 15, 2021
|
| Trade date: | April 5
|
| Settlement date: | April 10
|
| Ratings: | Moody's: B2
|
| S&P: BB-
|
| Distribution: | Rule 144A, Regulation S, private placement in Canada
|
| Price talk: | 9% to 9¼%
|
| Marketing: | Roadshow
|
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