Patterson-UTI completes $500M 2036 notes offering
Patterson-UTI Energy, Inc. completed a $500 million offering of 6.050% Senior Notes due 2036.
Rhea-AI Filing Summary
Patterson-UTI Energy, Inc. completed a $500 million offering of 6.050% Senior Notes due 2036. These senior unsecured notes pay interest semi-annually on May 15 and November 15 and mature on May 15, 2036.
The company intends to use the net proceeds to redeem its outstanding 3.95% Senior Notes due 2028 and for general corporate purposes. The notes rank equally with Patterson-UTI’s other senior unsecured debt and are structurally and effectively subordinated to certain existing and future obligations as described in the indenture and supplemental indenture.
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8-K Event Classification
3 items: 1.01, 2.03, 9.01
3 items
Item 1.01
Entry into a Material Definitive Agreement
Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 2.03
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
Financial
The company incurred a new significant debt or off-balance-sheet obligation.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Senior notes offering size: $500 million aggregate principal amount
Coupon rate: 6.050% per annum
Maturity date: May 15, 2036
+2 more
5 metrics
Senior notes offering size
$500 million aggregate principal amount
6.050% Senior Notes due 2036
Coupon rate
6.050% per annum
Interest rate on Senior Notes due 2036
Maturity date
May 15, 2036
Senior Notes due 2036
Interest payment dates
May 15 and November 15 each year
Payment schedule on 6.050% Senior Notes
Redeemed notes coupon
3.95% Senior Notes due 2028
Intended use of proceeds is redemption
Key Terms
Senior Notes, Supplemental Indenture, senior unsecured obligations, structurally subordinated, +1 more
5 terms
Senior Notes financial
"offering of $500 million aggregate principal amount of the Company’s 6.050% Senior Notes due 2036"
Senior notes are a type of loan that a company borrows from investors, promising to pay it back with interest. They are called "senior" because in case the company faces financial trouble, these lenders are paid back before others. This makes senior notes safer for investors compared to other types of loans or bonds.
Supplemental Indenture regulatory
"as supplemented by the third supplemental indenture (the “Supplemental Indenture”), dated as of May 19, 2026"
A supplemental indenture is a written amendment to the original bond agreement that changes specific terms of a debt contract, such as payment schedules, interest rates, collateral or covenant protections. Investors care because it alters the legal rights and risks tied to a security — like renegotiating a mortgage where the lender and borrower agree to new rules — and can affect a bond’s credit quality, yield and market value.
senior unsecured obligations financial
"The Notes are senior unsecured obligations of the Company, which rank equally with all other existing and future senior unsecured debt"
Senior unsecured obligations are loans or bonds that a company promises to pay back with its own money, but without any special guarantees or collateral. If the company runs into financial trouble, these debts are paid after other debts with priority, meaning they are less protected but still important. They matter because they show how risky it is to lend money to a company.
structurally subordinated financial
"The Notes will be structurally subordinated to the liabilities (including trade payables) of the Company’s subsidiaries"
A claim or security is structurally subordinated when it sits lower in the legal repayment order because it is issued by a subsidiary rather than the parent company, so its holders are paid only after the parent’s creditors and any creditors of the subsidiary’s parent entities are satisfied. Imagine a line for repayment: structurally subordinated investors stand further back in line, which affects the likelihood and amount they might recover if the company or group faces financial trouble. This matters to investors because it usually implies higher risk and can influence expected return, liquidity, and credit pricing.
Guarantees financial
"If any of the Company’s subsidiaries guarantee the Notes in the future, such guarantees (the “Guarantees”) will rank equally in right of payment"
A guarantee is a formal promise by one party to back another party’s obligation, such as a loan, payment, or contractual duty; if the primary party fails, the guarantor must fulfill the obligation. For investors, guarantees act like a safety net that can reduce the risk of loss but depend on the guarantor’s financial strength—if the guarantor is weak, the protection may be limited.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What debt transaction did Patterson-UTI Energy (PTEN) disclose in this 8-K?
Patterson-UTI Energy disclosed it completed a $500 million offering of 6.050% Senior Notes due 2036. These notes are senior unsecured obligations and were issued under an existing base indenture and a new third supplemental indenture with U.S. Bank Trust Company as trustee.
How will Patterson-UTI Energy (PTEN) use the $500 million note proceeds?
Patterson-UTI Energy intends to use the net proceeds from the 6.050% Senior Notes to redeem its outstanding 3.95% Senior Notes due 2028. Any remaining proceeds are earmarked for general corporate purposes, giving the company flexibility in managing its capital structure and operations.
What are the key terms of Patterson-UTI’s 6.050% Senior Notes due 2036?
The 6.050% Senior Notes bear interest at 6.050% per annum, payable on May 15 and November 15 each year, and mature on May 15, 2036. They are senior unsecured obligations, ranking equally with other senior unsecured debt and ahead of any future subordinated debt of Patterson-UTI.
Can Patterson-UTI Energy redeem the 6.050% Senior Notes early?
Patterson-UTI may redeem the notes, in whole or in part, at its option before February 15, 2036 at a redemption price described in the supplemental indenture, plus accrued interest. Beginning February 15, 2036, the company may redeem them at 100% of principal plus accrued interest.
How do the new notes rank relative to Patterson-UTI’s other obligations?
The new notes rank equally with all existing and future senior unsecured debt of Patterson-UTI and senior to any future subordinated debt. They are effectively subordinated to any future secured debt and structurally subordinated to liabilities of subsidiaries that do not guarantee the notes.
Do Patterson-UTI’s subsidiaries guarantee the 6.050% Senior Notes?
None of Patterson-UTI’s subsidiaries are currently required to guarantee the 6.050% Senior Notes. If any subsidiaries provide guarantees in the future, those guarantees will rank equally with the guarantors’ unsecured senior debt and be subordinated to any of their secured debt to the extent of securing assets.
AI-generated analysis. How Rhea-AI works. Not financial advice.
