By Paul A. Harris
Portland, Ore., Sept. 7 – Crescent Energy Co. priced an upsized $150 million add-on to the Crescent Energy Finance LLC 9¼% senior notes due Feb. 15, 2028 (B1/BB-/BB-) at 101.125 to yield 8.858% in a Thursday drive-by, according to market sources.
The issuer originally intended to sell a $125 million add-on.
The issue price came at the rich end of price talk in the 101 area.
The tap broke sharply higher and was trading at 102 bid, 102½ offered heading into the Thursday close, a trader said.
Left bookrunner RBC Capital Markets, LLC will bill and deliver. Joint bookrunners were BofA Securities, Inc., J.P. Morgan Securities LLC, KKR Capital Markets LLC, Mizuho Securities USA LLC, Wells Fargo Securities, LLC, Capital One Securities, Inc., Fifth Third Securities, Inc., KeyBanc Capital Markets Inc. and Truist Securities, Inc.
The Houston-based independent energy company plans to use the proceeds to fund a portion of its acquisition of the August Western Eagle Ford. Proceeds will be used in conjunction with the $135 million equity raise priced Wednesday night. Any remaining proceeds will be used for general corporate purposes. If the August Western Eagle Ford acquisition is not completed, then all proceeds will be used for general corporate purposes.
The incremental proceeds resulting from the $25 million upsize of the deal will be used to pay down the revolver.
| Issuer: | Crescent Energy Finance LLC
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| Amount: | $150 million, increased from $125 million
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| Issue: | Senior notes add-on
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| Maturity: | Feb. 15, 2028
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| Left bookrunner: | RBC Capital Markets, LLC (bill and deliver)
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| Joint bookrunners: | BofA Securities, Inc., J.P. Morgan Securities LLC, KKR Capital Markets LLC, Mizuho Securities USA LLC, Wells Fargo Securities, LLC, Capital One Securities, Inc., Fifth Third Securities, Inc., KeyBanc Capital Markets Inc. and Truist Securities, Inc.
|
| Coupon: | 9¼%
|
| Price: | 101.125
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| Yield: | 8.858%
|
| First call: | Feb. 15, 2025 at 104.625
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| Trade date: | Sept. 7
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| Settlement date: | Sept. 12 with accrued interest
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| Ratings: | Moody’s: B1
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| S&P: BB-
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| Fitch: BB-
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 101 area
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| Marketing: | Drive-by
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| Original issue: | $400 million priced in January 2023
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| Previous add-on: | $300 million priced in July 2023
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| Fungibility: | Add-on notes will immediately become fungible with all outstanding notes
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