By Paul A. Harris
Portland, Ore., March 16 – Foresight Energy LLC and Foresight Energy Finance Corp. priced a downsized, restructured $425 million issue of 11½% six-year second lien senior secured notes (Caa2/CCC/CCC) at 99.25 to yield 11.68% on Thursday, according to a syndicate source.
The amount was decreased from $500 million and the tenor of the bonds was reduced to six years from seven.
There were also covenant changes.
The coupon, price and yield came on top of revised talk. Earlier talk had the deal coming with a yield in the 11¼% area.
Goldman Sachs & Co. was the left bookrunner. Huntington, Deutsche Bank Securities Inc. and Citigroup Global Markets Inc. were the joint bookrunners.
The St. Louis-based producer and marketer of thermal coal plans to use the proceeds, together with its new credit facility, proceeds from an investment by Murray Energy and cash from the balance sheet, to repay and terminate its existing term loan and revolver, and redeem its second-lien notes and exchangeable PIK notes.
| Issuer: | Foresight Energy LLC and Foresight Energy Finance Corp.
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| Face amount: | $425 million, decreased from $500 million
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| Proceeds: | $421,812,500
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| Tenor: | Six years, decreased from seven years
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| Securities: | Second lien senior secured notes
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| Left bookrunner: | Goldman Sachs
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| Joint bookrunners: | Huntington, Deutsche Bank Securities Inc., Citigroup Global Markets Inc.
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| Coupon: | 11½%
|
| Price: | 99.25
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| Yield: | 11.68%
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| Spread: | 940 bps
|
| Call protection: | Three years
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| Trade date: | March 16
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| Settlement date: | March 28
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| Ratings: | Moody’s: Caa2
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| Standard & Poor’s: CCC
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| Fitch: CCC
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| Distribution: | Rule 144A for life and Regulation S
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| Price talk: | 11½% coupon at 99.25 to yield 11.68%
|
| Marketing: | Roadshow
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