Superior Energy Services' Strategic $600 Million Notes Offering
Overview of the Recent Notes Offering
Superior Energy Services, Inc. has recently made a significant announcement regarding its financial strategy. The company declared that its subsidiary, SESI, L.L.C., has successfully priced an offering of $600 million in Senior Secured Notes. These notes, bearing an interest rate of 7.875% and maturing in 2030, are aimed specifically at qualified institutional buyers as per SEC regulations.
Details About the Senior Secured Notes
The Senior Secured Notes will serve as senior secured obligations of SESI, complemented by guarantees from Superior Energy Services and select subsidiaries involved in guaranteeing Superior's commitments. Notably, these notes were priced at par, which is a positive indicator for potential investors.
Use of Offering Proceeds
SESI has clear intentions for utilizing the proceeds from this offering. A portion of the funds will go towards the repayment of debts associated with the acquisition of Quail Tools, LLC. This includes addressing seller financing and a bridge loan previously secured to facilitate this acquisition. The remainder of the funds will cover expenses related to the offering and support general corporate needs.
Regulatory Aspects and Future Plans
It is crucial to note that these notes are not registered under the federal securities laws, which restricts their sale within the United States without appropriate registration or exemptions. The closing date for this offering is anticipated to be on October 9, 2025, contingent on the fulfilment of standard closing requirements.
About Superior Energy Services, Inc.
Established to support major and independent oil and natural gas enterprises globally, Superior Energy Services plays a vital role in the market. The company provides a wide range of products and services that cater to various stages of a well's economic life cycle. Continuous innovation and adaptability are key to their operational success.
Investor Contact Information
For more information, interested parties can reach out to:
Joanna Clark, Deputy General Counsel & Corporate Secretary
1001 Louisiana St., Suite 2900
Houston, TX 77002
Investor Relations: ir@superiorenergy.com, (713) 654-2200
Frequently Asked Questions
What is the purpose of the $600 million notes offering?
The offering aims to raise funds for debt repayment related to the acquisition of Quail Tools, LLC and cover offer-related expenses.
Who can invest in these Senior Secured Notes?
The notes are primarily available for qualified institutional buyers and non-U.S. persons, per regulatory requirements.
What are the key features of these notes?
They are Senior Secured Notes with a fixed interest rate of 7.875%, maturing in 2030, and priced at par.
When is the closing date for the notes offering?
The anticipated closing date for the offering is October 9, 2025, pending customary closing conditions.
How does this offering benefit Superior Energy Services?
This strategic financial maneuver allows the company to manage its debts effectively, thereby supporting future operations and growth initiatives.
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