New Issue: Alta Mesa prices $300 million 9 5/8% eight-year notes to yield 9¾%

By Paul A. Harris

St. Louis, Oct. 7 - Alta Mesa Holdings, LP and Alta Mesa Finance Services Corp. priced a $300 million issue of 9 5/8% eight-year senior notes (B3/B/) at 99.307 to yield 9¾% on Thursday, according to an informed source.

The yield printed at the wide end of the 9½% to 9¾% price talk.

Wells Fargo Securities and Citigroup Global Markets Inc. were the joint bookrunners.

Proceeds will be used to repay the company's second-lien term loan, to pay down its revolver, to make a distribution to Alta Mesa Investment Holdings, Inc. and for general corporate purposes.

Alta Mesa is a Houston-based onshore oil and gas exploration and production company.

Issuers:	Alta Mesa Holdings, LP and Alta Mesa Finance Services Corp.
Face amount:	$300 million
Proceeds:	$297,921,000
Maturity:	Oct. 15, 2018
Securities:	Senior notes
Bookrunners:	Wells Fargo Securities, Citigroup Global Markets Inc.
Joint lead managers:	Mitsubishi UFJ Securities (USA), TD Securities
Co-managers:	Capital One Southcoast, ING
Coupon:	9 5/8%
Price:	99.307
Yield:	9¾%
Spread:	783 bps
Call features:	Callable on Oct. 15, 2014 at 104.813, 102.406, par on and after Oct. 15, 2016
Equity clawback:	35% at 109.625 until Oct. 15, 2013
Trade date:	Oct. 7
Settlement date:	Oct. 13
Ratings:	Moody's: B3
	Standard & Poor's: B
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	9½% to 9¾%
Marketing:	Roadshow

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