Parker Drilling Closes Senior Notes Sale at $300MM
Parker Drilling Company has closed its previously announced sale of senior notes due 2018 in a private offering that resulted in gross proceeds of $300 million. The notes bear interest at 9 1/8%. The notes are unsecured and guaranteed by substantially all of the Company's direct and indirect domestic subsidiaries other than immaterial subsidiaries and subsidiaries generating revenue primarily outside the United States. The notes will mature on April 1, 2018.
The Company intends to use the net proceeds of the offering of the notes to fund the March 8, 2010 cash tender offer for up to $225 million aggregate principal amount of the Company's 9 5/8% Senior Notes due 2013 and for general corporate purposes, which may include the redemption of any of the Company's 9 5/8% Senior Notes due 2013 not tendered in the tender offer and consent solicitation and the repayment of up to $42.0 million of borrowings under its revolving credit facility.
The securities have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.