Rowan Cos. Plc said Dec. 5 it opened a public offering of $400 million in senior unsecured notes due 2025. They will be obligations of Rowan Cos. Inc. (RCI), a wholly owned subsidiary.
The net proceeds and cash on hand will fund cash tender offers to purchase $750 million of RCI’s 5.000% senior notes due 2017, 7.875% senior notes due 2019, 4.875% senior notes due 2022 and 4.750% senior notes due 2024.
The tender offers include caps of $100 million for the 2019 notes, $235 million for the 2022 notes and $50 million for the 2024 notes.
If the tender offers are not fulfilled, or the purchase price of tendered notes is less than the amount of the 2025 notes’ net proceeds, the remainder of those proceeds will support general corporate purposes including capex.
BofA Merrill Lynch and Barclays Capital Inc. will be joint book-running managers for the senior notes offering.
Recommended Reading
Segrist: The LNG Pause and a Big, Dumb Question
2024-04-25 - In trying to understand the White House’s decision to pause LNG export permits and wondering if it’s just a red herring, one big, dumb question must be asked.
Texas LNG Export Plant Signs Additional Offtake Deal With EQT
2024-04-23 - Glenfarne Group LLC's proposed Texas LNG export plant in Brownsville has signed an additional tolling agreement with EQT Corp. to provide natural gas liquefaction services of an additional 1.5 mtpa over 20 years.
US Refiners to Face Tighter Heavy Spreads this Summer TPH
2024-04-22 - Tudor, Pickering, Holt and Co. (TPH) expects fairly tight heavy crude discounts in the U.S. this summer and beyond owing to lower imports of Canadian, Mexican and Venezuelan crudes.
What's Affecting Oil Prices This Week? (April 22, 2024)
2024-04-22 - Stratas Advisors predict that despite geopolitical tensions, the oil supply will not be disrupted, even with the U.S. House of Representatives inserting sanctions on Iran’s oil exports.
Association: Monthly Texas Upstream Jobs Show Most Growth in Decade
2024-04-22 - Since the COVID-19 pandemic, the oil and gas industry has added 39,500 upstream jobs in Texas, with take home pay averaging $124,000 in 2023.