Pacific Drilling bonds price at 99.5 to yield 7.375%; terms

Pacific Drilling this afternoon completed an offering of five-year (non-call three) secured notes via Goldman Sachs, Deutsche Bank, Citi, and DNB, with co-manager Global Hunter, according to sources. Terms on the B+/B3 transaction were inked at the wide end of price talk, though at the target size, at $500 million. Proceeds will be used to fund construction payments for the Pacific Khamsin rig, which was commissioned a year ago at Samsung Heavy Industries in South Korea. Additional capital supports general corporate purposes, according to sources. Note that Pacific Drilling becomes the third company that specializes in ultra-deepwater to issue bonds since mid-September. Terms:

Issuer Pacific Drilling Limited
Ratings B+/B3
Amount $500 million
Issue secured notes (144A for life)
Coupon 7.25%
Price 99.48
Yield 7.375%
Spread T+677 (approx.)
FRN eq. L+663 (approx.)
Maturity Dec. 1, 2017
Call nc3
Trade Nov. 16, 2012
Settle Nov. 28, 2012 (t+ 7)
Co’s. GHS
Px talk 7.25% area

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