By Paul A. Harris
Portland, Ore., March 1 – CNX Resources Corp. priced a $500 million issue of 7¼% eight-year senior notes (B3/BB-) on Friday, according to a company press release.
The deal was poised to clear the market discounted to 97.06 to yield 7¾%, market sources said.
The yield printed at the wide end of the 7½% to 7¾% yield talk.
The deal, which had been planned as a Thursday drive-by, was initially guided in the mid-to-high 6% area, sources say.
MUFG was the lead.
However, Credit Suisse Securities (USA) LLC initially shopped the deal with investors and was subsequently outbid by MUFG, sources say.
The Pittsburgh-based natural gas exploration, development and production company plans to use the proceeds to fund a tender for up to $400 million of its 5 7/8% senior notes due 2022, with the remainder to be used to repay debt under the revolving credit facility.
CNX Resources shelved a $500 million offering of eight-year senior notes in March 2018.
That deal had been in the market with yield talk in the 6½% area, with Credit Suisse on the left.
| Issuer: | CNX Resources Corp.
|
| Amount: | $500 million
|
| Maturity: | 2027
|
| Securities: | Senior notes
|
| Lead: | MUFG
|
| Coupon: | 7¼%
|
| Price: | 97.06
|
| Yield: | 7¾%
|
| Call protection: | Three years
|
| Trade date: | March 1
|
| Settlement date: | March 14
|
| Ratings: | Moody's: B3
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 7½% to 7¾%
|
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