Finance - Redemptions
The company intends to issue a notice of redemption, before the end of March, for all US$500 million of its 5.05% senior notes due in 2013.
Net proceeds from a recent offering of $250 million of 6.375% senior notes due 2021 will be the principal source of funding for the redemption.
The redemption will be funded with cash on hand, primarily with the net proceeds from Atlas Pipeline's sale of its remaining 49% interest in Laurel Mountain Midstream LLC.
The repurchase was made using a portion of the net proceeds from the company's recently-completed offering of $275 million aggregate principal amount of its 8.875% senior notes due 2019.
The company has amended the offer by reducing the base denomination of the notes required to be tendered.
Basic will use proceeds from its recently issued 7 3/4% senior notes due 2019 to fund the redemption.
The company will utilize net proceeds from its recent issuance of $50 million 5% Series B MRPS to facilitate the redemption.
The redemptions will retire a total of approximately $177 million of senior notes with a weighted average interest rate of 10.8%.
The MRP B shares are expected to be rated AA by Fitch Ratings.
As of February 3, $225 million of the 2013 notes and $300 million of the 2015 notes were outstanding.
Bristow used borrowings under its new $375-million secured bank credit agreement to fund the redemption.