Published on 8/13/2014 in the Prospect News High Yield Daily.
New Issue: Gulfport Energy prices upsized $300 million tap of 7¾% notes due 2020 at 106
By Paul A. Harris
Portland, Ore., Aug. 13 – Gulfport Energy Corp. priced an upsized $300 million tack-on to its 7¾% senior notes due Nov. 1, 2020 (B3/B-) at 106 to yield 6.106% on Wednesday, according to a syndicate source.
The deal was upsized from $250 million.
The reoffer price came at the rich end of the 105.75 to 106 price talk and the rich end of earlier guidance in the 105.5 area, a trader said.
Credit Suisse Securities (USA) LLC was the bookrunner.
The Oklahoma City-based oil and gas exploration and production company plans to use the proceeds to pre-fund its drilling program and to repay its revolving credit facility.
| Issuer: | Gulfport Energy Corp.
|
| Amount: | $300 million, increased from $250 million
|
| Maturity: | Nov. 1, 2020
|
| Security description: | Tack-on to 7¾% senior notes due Nov. 1, 2020
|
| Bookrunner: | Credit Suisse Securities (USA) LLC
|
| Joint lead managers: | Scotia Capital (USA) Inc., Barclays, Wells Fargo Securities LLC
|
| Co-managers: | Iberia Capital Partners LLC, KeyBanc Capital Markets Inc., Wedbush Securities Inc.
|
| Coupon: | 7¾%
|
| Price: | 106
|
| Yield to worst: | 6.106%
|
| Spread: | 473 bps
|
| First call: | Nov. 1, 2016 at 103.875
|
| Change-of-control put: | 101%
|
| Trade date: | Aug. 13
|
| Settlement date: | Aug. 18 with accrued interest
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 105.75 to 106
|
| Marketing: | Quick to market
|
| Original issue: | $250 million priced at 98.534 to yield 8% in October 2012
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| Previous tack-on: | $50 million priced at 101 to yield 7.531% in December 2012
|
| Fungibility: | New tack-on notes will be fungible with existing notes within six months
|
| Total issue size: | $600 million
|
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