Noble to price $600 million seven-year notes on Tuesday, initial talk 8 5/8% to 8 7/8% area

By Paul A. Harris

Portland, Ore., April 3 – Noble Corp. plc plans to price a $600 million offering of seven-year senior notes (B2/BB-/BB-) on Tuesday, according to market sources.

Initial guidance has the notes coming to yield in the 8 5/8% to 8 7/8% area, according to a bond trader.

The size of the offer will not grow.

The Rule 144A and Regulation S notes come with three years of call protection.

Proceeds will be used to fund the redemption of subsidiary Noble Finance Co.’s 11%/13%/15% senior secured PIK toggle notes due 2028 and to repay the outstanding borrowings under the $350 million term loan facility borrowed by subsidiary Drilling Co. of 1972 A/S.

The remainder of proceeds, if any, will be used for general corporate purposes.

J.P. Morgan Securities LLC is leading the notes sale.

The issuer will be Noble Finance II LLC.

Noble is an offshore drilling contractor organized in London.

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