Published on 3/2/2021 in the Prospect News High Yield Daily.
New Issue: Murphy Oil sells $550 million 6 3/8% long seven-year notes at par
By Paul A. Harris
Portland, Ore., March 2 – Murphy Oil Corp. priced a $550 million issue of long seven-year senior notes (Ba3/BB/BB+) at par to yield 6 3/8% in a Tuesday drive-by, according to market sources.
The yield printed in the middle of yield talk in the 6 3/8% area. Initial talk was in the high 6% area.
The new Murphy Oil 6 3/8% notes due 2028 were wrapped around par in trading late Tuesday, a trader said.
BofA Securities Inc. was the left bookrunner. Joint bookrunners were J.P. Morgan Securities LLC, MUFG, Scotia Capital (USA) Inc., Wells Fargo Securities LLC, Deutsche Bank Securities Inc. and Regions Securities LLC.
The Houston-based oil and gas exploration and production company plans to use the proceeds plus cash on hand and borrowings under its revolver, in any combination thereof, to redeem its 4% senior notes due 2022 and its 3.7% senior notes due 2022.
| Issuer: | Murphy Oil Corp.
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| Amount: | $550 million
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| Maturity: | July 15, 2028
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| Securities: | Senior notes
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| Left bookrunner: | BofA Securities Inc.
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| Joint bookrunners: | J.P. Morgan Securities LLC, MUFG, Scotia Capital (USA) Inc., Wells Fargo Securities LLC, Deutsche Bank Securities Inc. and Regions Securities LLC
|
| Co-managers: | Capital One Securities Inc., HSBC Securities (USA) Inc., SMBC Nikko Securities America Inc., SG Americas Securities LLC, Standard Chartered Bank and BMO Capital Markets Corp.
|
| Coupon: | 6 3/8%
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| Price: | Par
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| Yield: | 6 3/8%
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| Spread: | 525 bps
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| First call: | July 15, 2024 at 103.188
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| Trade date: | March 2
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| Settlement date: | March 5
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| Ratings: | Moody's: Ba3
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| S&P: BB
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| Fitch: BB+
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| Distribution: | SEC registered
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| Price talk: | 6 3/8% area
|
| Marketing: | Drive-by
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