Commentary & Deal Flow

EM/HY: Shelf Drilling Holdings Ltd (SHLFDI) $1.095bn (from $1.075bn) 144A/Reg S sr sec 1st lien notes due 04/15/29 (5.5y). Mandatory amortization: approx 7% annualized of the original issue amount p.a. ($75m annually with $37.5m semi-annual payment starting Oct-2024) mandatory redemption (fixed for life of Notes). NC2 (MWC T+50bp), then at 104.183, 102.406, 100. Equity claw: 2y 40% at 109.625. Special call: 10% per year the first 2 years at 103. B3/B-/B (stable/stable/stable). Via GS/DNB/JPM/Santander/Sparebank 1 jt books, Arctic, Clarksons, Fearnley as co-manager. No reg rights. List ISE. NY law. Settles 10/13 (T+10). 144A ISIN: US822538AH74. IPT: 10.25% area yield w/approx 2 pts OID. $20m upsize covers OID. Px talk: 10.00%-10.25% yield (inclusive of approx 2 pts OID). Launched: $1.095bn 9.625% at 98.184, yield 10.125%.

Priced: 9.625% at 98.184, yield 10.125%. +541bp vs 2.875% 04/30/29.

Did investor call at 1pm NYT / 6pm UKT Tues and 8am NYT / 1pm UKT Weds. Books closed at 10am NYT/3pm UKT today. UOP: along with approx $59m equivalent proceeds (NOK640m - 19.4m share at NOK33 per share) from a private equity offering priced 09/26, a $50m TLA and $64m cash on hand, to refinance its existing $310m sr sec notes due Nov 2024 and $900m sr notes due Feb 2025. 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.