Antero partial greenshoe ups 4.25% convertibles to $287.5 million

By Sarah Lizee

Olympia, Wash., Sept. 1 – Initial purchasers for Antero Resources Corp.’s 4.25% convertible notes due 2026 notified Antero of their intent to purchase an additional $37.5 million of the notes, bringing the total deal size of $287.5 million, according to an 8-K filing with the Securities and Exchange Commission.

Settlement of the additional notes is expected to occur on Wednesday.

As previously reported, the company priced $250 million of 4.25% convertible notes due 2026 with an initial conversion premium of 20%, according to a press release on Aug. 18.

Price talk was for a coupon of 3.75% to 4.25% and an initial conversion premium of 20% to 25%, according to a market source.

J.P. Morgan Securities LLC (lead left), Barclays and Credit Suisse Securities (USA) LLC are joint bookrunners for the Rule 144A offering, which carries a greenshoe of $50 million.

The notes are non-callable for 3.5 years and then subject to a 130% hurdle with a make-whole.

There is dividend and takeover protection.

Proceeds will be used repay debt under the company’s credit facility.

Antero Resources is a Denver-based gas and oil company.

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