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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: marc chatman who wrote (40087)	3/16/1999 10:46:00 AM
From: marc chatman	Read Replies (1) \| Respond to of 95453

R&B Falcon Corp. Plans to Sell $800 Million of Junk-Rated Notes March 15, New York (Bloomberg) -- R&B Falcon Corp., the fourth largest U.S. drilling contractor, plans to sell $800 million of junk-rated notes in two parts as soon as this week, according to investors familiar with the sale. The Houston-based company is to sell $400 million each of notes maturing in seven and 10 years. After investor presentations, pricing is expected Friday. R&B's debt ratings -- ''BB+'' by Standard & Poor's Corp. and ''Ba1'' by Moody's Investors Service -- are under review for possible reductions by both rating companies. S&P said the company's plan to raise more funds ''could result in an unanticipated increase in debt and thinner cash flow protection measures.'' The rating company said R&B is also ''vulnerable to additional drilling contract cancellations and/or revisions, which could further erode credit quality.'' Oil companies were forced to slash spending and cancel some contracts for drilling rigs as oil prices plunged to 12-year lows recently. In December, R&B said Mobil Corp., the second-largest U.S. oil company, canceled an offshore drilling contract valued at about $146 million. Donaldson, Lufkin & Jenrette Securities is expected to arrange the bond sale. 16:08:55 03/15/1999