Patterson-uti energy, inc. completes offering of $350 million aggregate principal amount of its 5.15% senior notes due 2029
On november 15, 2019, patterson-uti energy, inc. (the “company”) completed its previously announced offering (the “offering”) of $350 million aggregate principal amount of the company’s 5.15% senior notes due 2029 (the “notes”). on november 15, 2019, the company entered into a base indenture (the “base indenture”) and a supplemental indenture (the “first supplemental indenture” and, together with the base indenture, the “indenture”) with u.s. bank national association, as trustee (the “trustee”), pursuant to which the notes were issued. the company will pay interest on the notes on may 15 and november 15 of each year. the notes will mature on november 15, 2029. the notes bear interest at a rate of 5.15% per annum. the notes are senior unsecured obligations of the company, which rank equally with all other existing and future senior unsecured debt of the company and will rank senior in right of payment to all other future subordinated debt of the company. the notes will be effectively subordinated to any of the future secured debt of the company to the extent of the value of the assets securing such debt. in addition, the notes will be structurally subordinated to the liabilities (including trade payables) of the company’s subsidiaries that do not guarantee the notes. none of the company’s subsidiaries are currently required to be a guarantor under the notes. if any of the company’s subsidiaries guarantee the notes in the future, such guarantees (the “guarantees”) will rank equally in right of payment with all of the guarantors’ future unsecured senior debt and senior in right of payment to all of the guarantors’ future subordinated debt. the guarantees will be effectively subordinated to any of the guarantors’ future secured debt to the extent of the value of the assets securing such debt. the company, at its option, may redeem the notes in whole or in part, at any time or from time to time at a redemption price equal to 100% of the principal amount of such notes to be redeemed, plus accrued and unpaid interest, if any, on those notes to the redemption date, plus a make-whole premium. additionally, commencing on august 15, 2029, the company, at its option, may redeem the notes in whole or in part, at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any, on those notes to the redemption date. the indenture includes covenants that, among other things, limit the company’s and its subsidiaries’ ability to incur certain liens, engage in sale and lease-back transactions or consolidate, merge, or transfer all or substantially all of their assets. these covenants are subject to important qualifications and limitations set forth in the indenture. upon the occurrence of a change of control triggering event, as defined in the indenture, each holder of the notes may require the company to purchase all or a portion of such holder’s notes at a price equal to 101% of their principal amount, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date. the indenture also provides for events of default which, if any of them occurs, would permit or require the principal of, premium, if any, and accrued interest, if any, on the notes to become or to be declared due and payable.
