Ensco plc (NYSE: ESV), which provides offshore drilling services, has priced an underwritten offering of $1.1 billion principal amount of senior unsecured notes consisting of two series: $700 million principal amount of 5.20% senior unsecured notes due 2025 priced at 99.622% of par; and $400 million principal amount of additional 5.75% senior unsecured notes due 2044 priced at 95.335% of par.
The expected settlement date for the offering is March 12.
Concurrent with the notes offering, Ensco is conducting a cash tender offer for any and all of its 3.25% senior notes due 2016. Ensco intends to use a portion of the net proceeds from the notes offering to fund the purchase price and accrued interest payable with respect to the 2016 notes and to fund the redemption of any 2016 notes outstanding after completion of the tender offer. Ensco also intends to use the remaining net proceeds to redeem all of its outstanding government guaranteed MARAD obligations with approximately $65.3 million aggregate principal amount maturing through 2020 and for general corporate purposes.
Citigroup Global Markets Inc., Deutsche Bank Securities Inc., and HSBC Securities (USA) Inc. are acting as joint book-running managers in connection with the offering.