Key Energy, Pool Energy Message Board

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Technology Stocks : Key Energy, Pool Energy

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To: Scarecrow who wrote ()	9/18/1997 3:27:00 PM
From: Nosmo King48	of 36

Key Energy Places $180.0 Million of Convertible Subordinated Notes in a Private Offering EAST BRUNSWICK, N.J.--(BUSINESS WIRE)--September 18, 1997--Key Energy Group, Inc. (ASE:KEG) announced today that it has placed $180.0 million of convertible subordinated notes in a private offering under Rule 144A. In additon, the company has granted the initial purchasers an over-allotment option to purchase an additional 20% of the offering. The convertible notes bear interest at a 5% coupon rate and are convertible into shares of the company's common stock based upon a conversion price of $38.50, which represents a 20.3% premium to its closing price of $32.00 in yesterday's trading. The net proceeds of the offering will be used to pay down the company's senior indebtedness. The notes offering will reduce the interest rate on Key Energy's outstanding indebtedness. In addition, based upon the coupon rate, conversion price and resulting number of shares issuable upon conversion, the company believes that the offering will result in significant accretion on both a primary and fully- diluted basis to historical as well as prospective earnings per share. In addition, the offering allows the company to maximize the flexibility and availability of its revolving credit facility as it continues to implement its strategy of growth through acquisitions. The placement was in a private offering that was not registered under the Securities Act, and offers and resales can be made only pursuant to registration or an exemption therefrom. Key Energy Group, Inc. is a holding company with diversified energy operations including well servicing/workover services, contract drilling and oil and natural gas production. The company has operations in most major domestic onshore producing regions and in Argentina.

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