Pioneer Energy Services Corp. (NYSE: PES) has closed its offering of $300 million in aggregate principal amount of its 6.125% senior notes due 2022. The notes are guaranteed by certain of Pioneer's existing and future domestic subsidiaries.
The net proceeds from the offering will be used by Pioneer to fund a portion of its previously announced cash tender offer for its outstanding 9⅞% senior notes due 2018 and to pay accrued interest thereon and related premiums, fees and expenses. To the extent that any portion of the net proceeds of the offering is not used as described above, Pioneer plans to use such net proceeds to redeem any of the existing notes, up to $300 million of the existing notes, not tendered in the tender offer.
Pioneer also announced today the early tender results for the tender offer. As of 5 p.m., New York City time, on March 17, holders of approximately $99,472,000 of the existing notes validly tendered and did not withdraw their existing notes for purchase by Pioneer.