By Paul A. Harris
Portland, Ore., April 4 – Valaris Ltd. and Valaris Finance Co. LLC priced an upsized $700 million issue of seven-year senior secured second-lien notes (B2/BB/BB-) at par to yield 8 3/8% on Tuesday, according to market sources.
The yield printed at the tight end of yield talk in the 8½% area. Initial price talk was 8¾% to 9%.
The deal was heard to be playing to $3 billion of demand, a trader said.
Citigroup Global Markets Inc. was the left physical bookrunner. Deutsche Bank Securities Inc. and DNB were joint physical bookrunners. Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. LLC were joint bookrunners.
The Bermuda-based offshore drilling company plans to use the proceeds to redeem all of its outstanding senior secured first-lien notes due 2028 and for general corporate purposes.
| Issuer: | Valaris Ltd. and Valaris Finance Co. LLC
|
| Amount: | $700 million
|
| Securities: | Senior secured second-lien notes
|
| Maturity: | April 30, 2030
|
| Bookrunners: | Citigroup Global Markets Inc. (left), Deutsche Bank Securities Inc., DNB, Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. LLC
|
| Coupon: | 8 3/8%
|
| Price: | Par
|
| Yield: | 8 3/8%
|
| Spread: | Treasuries plus 500 bps
|
| First call: | April 30, 2026 at 104.188
|
| Trade date: | April 4
|
| Settlement date: | April 19
|
| Ratings: | Moody's: B2
|
| S&P: BB
|
| Fitch: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8½% area
|
| Marketing: | Roadshow
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