Published on 10/26/2012 in the Prospect News High Yield Daily.
New Issue: Heckmann prices $150 million tap of 9 7/8% notes due 2018 at 100.25 to yield 9.812%
By Paul A. Harris
Portland, Ore., Oct. 26 - Heckmann Corp. priced a $150 million tack-on to its 9 7/8% senior notes due April 15, 2018 (B3/B/) at 100.25 to yield 9.812% on Friday, according to a syndicate source.
The reoffer price came in the middle of the 100 to 100.5 price talk.
Jefferies & Co. Inc., Wells Fargo Securities LLC and Credit Suisse Securities (USA) LLC were the joint bookrunners.
Proceeds will be used to fund the merger with Power Fuels LLC and to refinance existing debt.
Heckmann is a Coraopolis, Pa.-based provider of total water solutions for the oil and gas exploration and production industry.
| Issuer: | Rough Rider Escrow, Inc., proceeds will go to Heckmann Corp. following the merger
|
| Face amount: | $150 million
|
| Proceeds: | $150,375,000
|
| Maturity: | April 15, 2018
|
| Security description: | Tack-on to 9 7/8% senior notes due April 15, 2018
|
| Bookrunners: | Jefferies & Co. Inc., Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC
|
| Co-managers: | RBS Securities Inc., Roth Capital Partners LLC
|
| Coupon: | 9 7/8%
|
| Price | 100.25
|
| Yield: | 9.812%
|
| Call features: | Make-whole call at Treasuries plus 50 bps until April 15, 2015, then callable at 104.938, 102.469, par on and after April 15, 2017
|
| Equity clawback: | 35% at 109.875 until April 15, 2015
|
| Change-of-control put: | 101%
|
| Trade date: | Oct. 26
|
| Settlement date: | Nov. 5
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A with registration rights and Regulation S
|
| Price talk: | 100 to 100.5
|
| Marketing: | Roadshow
|
| Original issue: | $250 million issue priced at 99.442 to yield 10% on April 4, 2012
|
| Fungibility: | Tack-on notes will be fungible with existing notes
|
| Total issue size: | $400 million
|
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