Commentary & Deal Flow

Shelf Drilling Holdings Ltd (SHLFDI) $300m 144A/Reg S gtd sr sec 1st lien notes due 11/15/2024 (3.75y). NC1 (MWC T+50bp) (par + 75% for 12mos, par + 37.5% for 6mos, then par). Equity claw: 1y 35%. B2/-- (negative/--). Via CS. IPT: high 9s-10 yield, inclusive of OID.

Px talk: all in yield of 9.75% area, inclusive of 1-2 points OID.

Did investor call at 10:30am yesterday (1x1s available). Books close at 12pm today. Pricing this afternoon. UOP: repay the $55m drawn on and terminate its $225m revolver, $24m cash to collateralize all of the outstanding bank guarantees under the revolver, redeem/repurchase its $80m 8.75% sr sec 2nd lien notes due 11/15/24, and GCP. Biz: a leading intl shallow water offshore drilling contractor providing equipment and services for the drilling, completion, maintenance and decommissioning of oil and natural gas wells. HQ: Dubai, UAE.