Pioneer Energy Services Corp. has priced its offering of up to $300 million aggregate principal amount of 6.125% senior notes due 2022, which will be issued at a price equal to 100% of their face value, plus accrued and unpaid interest from March 18. The notes will be guaranteed by certain of Pioneer's existing and future domestic subsidiaries, and will be senior obligations of the guarantors.
The closing of the offering is expected to occur on or about March 18. The net proceeds from the offering, if completed, are expected to be used by the Pioneer to fund a portion of Pioneer's previously announced cash tender offer for up to $300 million of Pioneer's outstanding 9⅞% senior notes due 2018 and to pay related premiums, fees and expenses.
Pioneer has also upsized its previously announced cash tender offer. Under the terms of the upsized tender offer, Pioneer is offering to purchase up to $300 million in aggregate principal amount of its outstanding 9 7/8% senior notes due 2018 (CUSIP No. 723655AB2) on the terms, and subject to the conditions set forth in the offer to purchase, dated March 4, and the related letter of transmittal. The maximum repurchase amount had previously been set at $250 million in aggregate principal amount. Other than the new maximum repurchase amount, the other terms and conditions of the tender offer remain unchanged.
Pioneer intends to fund the purchase of the notes with proceeds from a concurrent offering by Pioneer of $300 million of new senior notes, resulting in net proceeds to Pioneer that are, together with available cash and borrowings under Pioneer's senior secured revolving credit facility, sufficient to purchase, and to pay for, notes validly tendered and not properly withdrawn pursuant to the tender offer.
Pioneer has engaged BofA Merrill Lynch as the dealer manager for the tender offer.