Published on 11/18/2011 in the Prospect News High Yield Daily.
New Issue: Kodiak prices upsized $650 million 8 1/8% eight-year notes at par
By Paul A. Harris
Portland, Ore., Nov. 18 - Kodiak Oil & Gas Corp. priced an upsized $650 million issue of eight-year senior notes (Caa1/B-/) at par to yield 8 1/8% on Friday, according to an informed source.
The yield printed in the middle of the 8% to 8¼% price talk.
Credit Suisse Securities (USA) LLC, KeyBanc Capital Markets, RBC Capital Markets and Wells Fargo Securities LLC were the joint bookrunners for the issue, which was upsized from $550 million.
The Denver-based energy exploration and development company plans to use the proceeds to fund acquisitions, to pay down debt and for general corporate purposes. The additional proceeds from the upsizing will also be used for general corporate purposes.
Concurrently with this issue, Kodiak Oil & Gas is conducting a registered offering of 42 million shares of its common stock at a price to the public of $7.75 per share and, at the option of the underwriters of the equity offering, up to 6.3 million additional shares to cover any over-allotments.
| Issuer: | Kodiak Oil & Gas Corp.
|
| Amount: | $650 million, increased from $550 million
|
| Maturity: | Dec. 1, 2019
|
| Securities: | Senior notes
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, KeyBanc Capital Markets Inc., RBC Capital Markets, LLC, Wells Fargo Securities, LLC
|
| Coupon: | 8 1/8%
|
| Price: | Par
|
| Yield: | 8 1/8%
|
| Spread: | 650 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps until Dec. 1, 2015, then callable at 104.063, 102.031, par on and after Dec. 1, 2017
|
| Equity clawback: | 35% at 108.125 until Dec. 1, 2014
|
| Change-of-control put: | 101%
|
| Trade date: | Nov. 18
|
| Settlement date: | Nov. 23
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 8% to 8¼%
|
| Marketing: | Roadshow
|
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