By Paul A. Harris
Portland, Ore., May 14 - Kodiak Oil & Gas Corp. priced an upsized $150 million add-on to its 8 1/8% senior notes due Dec. 1, 2019 (Caa1/B-) at 104 on Monday, according to a syndicate source.
The reoffer price, which came on top of the price talk, renders a 7.234% yield to maturity.
RBC Capital Markets was the left bookrunner for the quick-to-market issue, which was upsized from $100 million.
Wells Fargo Securities LLC and Credit Suisse Securities (USA) LLC were the joint bookrunners.
The Denver-based energy exploration and development company plans to use the proceeds to refinance existing debt and pre-fund future capital expenditures.
The original $650 million issue priced at par on Nov. 18, 2011.
The add-on notes will be immediately fungible with those existing notes.
| Issuer: | Kodiak Oil & Gas Corp.
|
| Amount: | $150 million, increased from $100 million
|
| Proceeds: | $156 million
|
| Maturity: | Dec. 1, 2019
|
| Security description: | Add-on to 8 1/8% senior notes due Dec. 1, 2019
|
| Left bookrunner: | RBC Capital Markets
|
| Joint bookrunners: | Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC
|
| Co-managers: | BMO Capital Markets Corp., KeyBanc Capital Markets Inc.
|
| Coupon: | 8 1/8%
|
| Price: | 104
|
| Yield to worst: | 7.234%
|
| 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: | May 14
|
| Settlement date: | May 17 with accrued interest
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Fungible: | Yes
|
| Price talk: | 104 area
|
| Marketing: | Quick to market
|
| Original issue: | Original $650 million issue priced at par on Nov. 18, 2011
|
| Total issue size: | $800 million
|
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