Precision Drilling sets price talk on $250 million 6.5-year notes

By Paul A. Harris

St. Louis, Feb. 13 - Precision Drilling Trust set price talk for its $250 million offering of 6.5-year senior notes on Friday, according to an informed source.

The notes are talked with a 13½% coupon, at a price of 90.00 to 92.00, to yield 15½% to 16%.

The books are scheduled to close at noon ET on Wednesday, and the notes are expected to price thereafter.

Credit ratings remain to be determined.

Deutsche Bank Securities Inc. and RBC Capital Markets are joint bookrunners for the Rule 144A offering. HSBC is the co-manager.

The notes will come with four years of call protection.

Proceeds will be used to reduce debt under the company's bridge facility used to fund the acquisition of Grey Wolf, Inc, which closed on Dec. 23.

The company is doing a concurrent offering of trust units, which is expected to generate gross proceeds of about $150 million.

Precision Drilling is a Calgary, Alta.-based provider of services to the oil and gas industry.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.