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) | |
| Jt. Books | GS/DB/CITI/DNB | |
| Co’s. | GHS | |
| Px talk | 7.25% area | |
| Notes |