Published on 1/25/2012 in the Prospect News Canadian Bonds Daily and Prospect News High Yield Daily.
New Issue: PetroBakken sells upsized $900 million 8 5/8% eight-year notes to yield 8.713%
By Paul A. Harris
Portland, Ore., Jan. 25 - PetroBakken Energy Ltd. priced an upsized $900 million issue of 8 5/8% eight-year senior notes (Caa1/CCC+/) at 99.5 to yield 8.713% on Wednesday, according to an informed source.
The yield came toward the tight end of price talk, which had been set in the 8¾% area.
Credit Suisse Securities (USA) LLC and Bank of America Merrill Lynch were the joint global coordinators for the deal, which was upsized from $750 million.
Credit Suisse, Bank of America Merrill Lynch and RBC Capital Markets, LLC were the joint bookrunners.
The Calgary, Alta.-based light oil exploration and production company plans to use the proceeds to fund the concurrent partial tender of up to $450 million of its convertible notes maturing in 2016 and to repay a portion of its revolver. The $150 million upsize amount will also be applied to the company's revolver.
| Issuer: | PetroBakken Energy Ltd.
|
| Face amount: | $900 million
|
| Proceeds: | $895.5 million
|
| Maturity: | Feb. 1, 2020
|
| Securities: | Senior notes
|
| Joint global coordinators: | Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch
|
| Joint bookrunners: | Credit Suisse, Bank of America Merrill Lynch, RBC Capital Markets, LLC
|
| Co-lead managers: | TD Securities (USA) LLC, CIBC World Markets Corp., Scotia Capital (USA) Inc.
|
| Co-managers: | HSBC Securities (USA) Inc., BMO Capital Markets Corp., Desjardins Securities Inc., Mitsubishi UFJ Securities (USA), Inc., SG Americas Securities, LLC, SMBC Nikko Capital Markets Ltd.
|
| Coupon: | 8 5/8%
|
| Price: | 99.5
|
| Yield: | 8.713%
|
| Spread: | 714 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Feb. 1, 2016, then callable at 104.313, 102.156, par on and after Feb. 1, 2018
|
| Equity clawback: | 35% at 108.625 until Feb. 1, 2015
|
| Trade date: | Jan. 25
|
| Settlement date: | Jan. 30
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8¾% area
|
| Marketing: | Roadshow
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
