By Paul A. Harris
Portland, Ore., Feb. 25 - Goodrich Petroleum Corp. priced an upsized $275 million issue of eight-year senior notes (Caa1/CCC+/) at par to yield 8 7/8% on Friday, according to market sources.
The yield printed at the wide end of price talk that was set in the 8¾% area.
J.P. Morgan Securities LLC, Jefferies & Co., BMO Nesbitt Burns, BNP Paribas Securities Corp., RBC Capital Markets, Wells Fargo Securities and Bank of America Merrill Lynch were the joint bookrunners for the issue, which was upsized from $225 million.
The Houston-based oil and gas company plans to place a portion of the bond proceeds into escrow to be used to redeem $175 million of its 3¼% convertible senior notes due 2026 in December or to repurchase the notes prior to redemption.
Any remaining proceeds would be used for general corporate purposes, including funding a portion of 2011 capital expenditures.
Goodrich Petroleum is active primarily in east Texas and northwest Louisiana.
| Issuer: | Goodrich Petroleum Corp.
|
| Amount: | $275 million, increased from $225 million
|
| Maturity: | March 15, 2019
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Jefferies & Co., BMO Nesbitt Burns, BNP Paribas, RBC Capital Markets, Wells Fargo Securities, Bank of America Merrill Lynch
|
| Co-managers: | BBVA Securities, Morgan Stanley & Co. Inc.
|
| Coupon: | 8 7/8%
|
| Price: | Par
|
| Yield: | 8 7/8%
|
| Spread: | 603 bps
|
| Call protection: | Four years
|
| Trade date: | Feb. 25
|
| Settlement date: | March 2
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 8¾% area
|
| Marketing: | Roadshow
|
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