Published on 1/10/2013 in the Prospect News High Yield Daily.
New Issue: Kodiak Oil & Gas prices upsized $350 million eight-year notes at par to yield 5½%
By Paul A. Harris
Portland, Ore., Jan. 10 - Kodiak Oil & Gas Corp. priced an upsized $350 million issue of eight-year senior notes (B3/B-) at par to yield 5½% on Thursday, according to a syndicate source.
The yield printed at the tight end of the 5½% to 5¾% yield talk.
Wells Fargo Securities LLC was the left bookrunner for the quick-to-market issue, which was upsized from $300 million.
BMO Capital Markets Corp., KeyBanc Capital Markets Inc., RBC Capital Markets LLC, Scotia Capital (USA) Inc. and Credit Suisse Securities (USA) LLC were the joint bookrunners.
Proceeds, including proceeds from the upsizing, will be used to pay down the balance outstanding under the company's first-lien credit agreement.
Kodiak is a Denver-based independent oil and gas exploration and production company.
| Issuer: | Kodiak Oil & Gas Corp.
|
| Amount: | $350 million, increased from $300 million
|
| Maturity: | Jan. 15, 2021
|
| Securities: | Senior notes
|
| Left bookrunner: | Wells Fargo Securities LLC
|
| Joint bookrunners: | BMO Capital Markets Corp., KeyBanc Capital Markets Inc., RBC Capital Markets LLC, Scotia Capital (USA) Inc., Credit Suisse Securities (USA) LLC
|
| Co-managers: | Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc., Barclays, Comerica Securities Inc., U.S. Bancorp Investments Inc.
|
| Coupon: | 5½%
|
| Price: | Par
|
| Yield: | 5½%
|
| Spread: | 404 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Jan. 15, 2017, then callable at 102.75, 101.375, par on and after Jan. 15, 2019
|
| Equity clawback: | 35% at 105.5 until Jan. 15, 2016
|
| Change-of-control put: | 101%
|
| Trade date: | Jan. 10
|
| Settlement date: | Jan. 15
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 5½% to 5¾%
|
| Marketing: | Quick to market
|
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