Pride Prices Public Offering of $1.2B
Pride has priced an underwritten public offering of $1.2 billion aggregate principal amount of senior notes under its effective shelf registration statement previously filed with the Securities and Exchange Commission. The notes were priced in two separate tranches, consisting of $900 million of 6 7/8% Senior Notes due 2020 and $300 million of 7 7/8% Senior Notes due 2040. The public offering price was 100% of the principal amount of each series. The offering is expected to close on August 6, 2010, subject to the satisfaction of customary closing conditions.
The company may elect to redeem any or all of the notes of each series at any time prior to maturity at a redemption price equal to the principal amount of the notes redeemed plus accrued but unpaid interest and a "make-whole premium." The notes will be senior unsecured obligations of the company.
The company will use a portion of the net proceeds to retire its $500 million 7 3⁄8% Senior Notes due 2014. The company expects to use the remaining net proceeds for general corporate purposes, which may include payments with respect to its three drillships under construction and other capital expenditures.