Pioneer Taps HY Market for $250M
February 24, 2010
San Antonio-based Pioneer Drilling plans to issue $250 million in senior unsecured notes due 2018, making it the second drilling company to hit the high yield market this week.
The drilling services company said Tuesday that will use the funds to repay some of its outstanding senior secured revolver debt. Lead underwriter Bank of America Merrill Lynch plans to conduct a road show beginning today and ending March 3 with the deal's pricing.
Moody's Investors Service assigned a B3 rating to the proposed notes.
Another drilling company, Rubicon Drilling Services, plans to issue $260 million in junk bonds to help finance the purchase of an oil drilling rig. The issue is expected to price today (LFN, Feb. 22, 2010).
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