Wells Fargo Gets $200 Million for Helmerich & Payne
Upsized from $100 million...
June 29, 2009
Tulsa, Okla.-based oil and gas company Helmerich & Payne Inc. tapped the U.S. private placement market for $200 million in an upsized deal via Wells Fargo last week, sources confirmed.
The deal was launched at $100 million in size but was upsized to $200 million. The transaction consisted of a seven-year final, five-year average life tranche priced at 340 basis points over Treasurys. Twelve investors participated in the deal.
H&P is an existing private placement issuer, having successfully tapped the market in July 2002. That deal was also $200 million in size—upsized from $125 million—and priced in five-, seven-,10-, and 12-year bullet tranches at 150, 150, 160, and 170 basis points over Treasurys, respectively. The deal was agented by the entity then known as Banc One.
H&P is publicly-traded on the New York Stock Exchange [Ticker:HP] and has a market cap of $3.25 billion. The company is primarily engaged in contract drilling of oil and gas wells in a variety of locations throughout U.S. and Central and South America.
For its second fiscal quarter, ended March 31, 2009, H&P reported $520 million in revenue and $103.7 million in net income, versus $473.6 million in revenue and $102 million in net income for the year-prior period.—GC
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