Ensco offers $650 million exchangeable senior notes due 2024 to yield 2.75%-3%, up 32.5%-35%

By Stephanie N. Rotondo

Seattle, Dec. 6 – Ensco plc is pricing $650 million of exchangeable senior notes due Jan. 31, 2024, according to a company press release on Tuesday.

The notes will be issued by Ensco Jersey Finance Ltd., a wholly owned subsidiary, via a private placement.

Price talk is for a yield of 2.75% to 3% with an initial exchange premium of 32.5% to 35%, a market source reported.

Citigroup Global Markets Inc., HSBC, Deutsche Bank Securities Inc., DNB and BNP Paribas are running the books.

The deal includes a $97.5 million over-allotment option.

Prior to July 31, 2023, the notes will only be convertible in certain circumstances. Conversions will be settled via cash, class A ordinary shares or a combination thereof.

Interest will be payable semiannually.

Proceeds will be used to fund the cash portion of Ensco’s concurrent exchange offers for the outstanding 4.7% senior notes due 2021, the 8.5% senior notes due 2019 and 6.875% senior notes due 2020.

If the exchange is not successful or if the funds from the offering exceed what is needed in the exchange, remaining proceeds will be used to repurchase or refinance other debt and for general corporate purposes.

Ensco is a London-based provider of offshore drilling services to the petroleum industry.

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