The company said it could issue up to US$500 million in guaranteed senior unsecured notes to qualified institutional buyers in the US.

The notes will be guaranteed by Ausdrill and certain subsidiaries.

If the offering is successful, Ausdrill plans to use the proceeds to redeem all of the outstanding $350 million 6.625% senior secured notes due in 2022 at a redemption price of 103.13% of the principal amount of the notes redeemed plus accrued and unpaid interest up to the redemption date.

The notes were acquired as part of the 2018 takeover of Barminco Holdings.

Ausdrill also plans to partially repay the $141 million and A$20 million outstanding under its $300 million revolving credit facilities.

The company only refinanced the facilities late last month to extend the duration to July 2023 and lower the interest rate.

Shares in Ausdrill have performed strongly this year, starting 2019 at $1.19 and closing yesterday at $1.535, valuing the company at $1.05 billion.