By Paul A. Harris
Portland, Ore., Aug. 1 - Crescent Resources, LLC and Crescent Ventures, Inc. priced an upsized and restructured $350 million issue of five-year senior secured notes (Caa2/B/) at par to yield 10¼% on Wednesday, according to a syndicate source.
The deal was upsized from $325 million
The tenor of the notes was decreased to five years from seven years.
The yield printed at the wide end of the 10% to 10¼% yield talk.
Jefferies & Co., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC were the joint bookrunners.
Proceeds, together with $50 million of new equity from sponsors Anchorage Capital Master Offshore, Ltd. and MatlinPatterson Global Opportunities Partners III LP, will be used to repay existing debt and to fund general corporate purposes.
Crescent Resources is a diversified private real estate operating company based in Charlotte, N.C.
| Issuer: | Crescent Resources, LLC and Crescent Ventures, Inc.
|
| Amount: | $350 million, increased from $325 million
|
| Maturity: | Aug. 15. 2017 (maturity decreased to five years from seven years)
|
| Securities: | Senior secured notes
|
| Bookrunners: | Jefferies & Co. Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC
|
| Coupon: | 10¼%
|
| Price: | Par
|
| Yield: | 10¼%
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Aug. 15, 2015, then callable at 107.688, par on and after Aug. 15, 2016
|
| Equity clawback: | 35% at 110.25 until Aug. 15, 2015
|
| Change-of-control put: | 101%
|
| Trade date: | Aug. 1
|
| Settlement date: | Aug. 9
|
| Ratings: | Moody's: Caa2
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 10% to 10¼%
|
| Marketing: | Roadshow
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