Published on 5/29/2014 in the Prospect News Canadian Bonds Daily and Prospect News High Yield Daily.
New Issue: Precision Drilling prices $400 million 10.5-year notes at par to yield 5¼%
By Paul A. Harris
Portland, Ore., May 29 - Precision Drilling Corp. priced a $400 million issue of 10.5-year senior notes (Ba1/BB) at par to yield 5¼% on Thursday, according to a syndicate source.
The yield came on top of yield talk.
Credit Suisse Securities (USA) LLC, RBC Capital Markets and Morgan Stanley & Co. were joint bookrunners.
The Calgary, Alta. -based provider of drilling services to the oil and gas industry plans to use the proceeds for general corporate purposes including building new rigs.
Issuer: | Precision Drilling Corp.
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Securities: | Senior notes
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Amount: | $400 million
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Maturity: | Nov. 15, 2024
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Bookrunners: | Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC, Morgan Stanley & Co. LLC
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Co-managers: | BofA Merrill Lynch, HSBC Securities (USA) Inc., Scotia Capital (USA) Inc., TD Securities (USA) LLC, Wells Fargo Securities LLC
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Coupon: | 5¼%
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Price: | Par
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Yield: | 5¼%
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Spread: | 287 bps
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First call: | May 15, 2019 at 102.625
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Equity clawback: | 35% at 105.25 until May 15, 2017
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Investor put: | 101% upon change of control
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Trade date: | May 29
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Settlement date: | June 3
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Ratings: | Moody's: Ba1
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| Standard & Poor's: BB
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Distribution: | Rule 144A and Regulation S with registration rights
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Price talk: | 5¼% area
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Marketing: | Roadshow
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