Published on 7/23/2013 in the Prospect News High Yield Daily.
New Issue: Kodiak Oil & Gas sells upsized $400 million 5½% 8.5-year notes at par
By Paul A. Harris
Portland, Ore., July 23 - Kodiak Oil & Gas Corp. priced an upsized $400 million issue of 8.5-year senior notes (B3/B/) at par to yield 5½% on Tuesday, according to a syndicate source.
The quick-to-market deal was upsized from $300 million.
The yield printed at the tight end of the 5½% to 5¾% yield talk.
Credit Suisse Securities (USA) LLC, KeyBanc Capital Markets Inc., RBC Capital Markets LLC, Wells Fargo Securities LLC, BMO Capital Markets Corp. and Scotia Capital (USA) Inc. were the joint bookrunners.
The Denver-based independent oil and gas exploration and production company plans to use the proceeds to repay debt.
| Issuer: | Kodiak Oil & Gas Corp.
|
| Amount: | $400 million, increased from $300 million
|
| Maturity: | Feb. 1, 2022
|
| Securities: | Senior notes
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, KeyBanc Capital Markets Inc., RBC Capital Markets LLC, Wells Fargo Securities LLC, BMO Capital Markets Corp., Scotia Capital (USA) Inc.
|
| Co-managers: | Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc., BofA Merrill Lynch, Citigroup Global Markets Inc., Capital One Southcoast Inc., Comerica Securities Inc., Mitsubishi UFJ Securities (USA) Inc., U.S. Bancorp Investments Inc.
|
| Coupon: | 5½%
|
| Price: | Par
|
| Yield: | 5½%
|
| Spread: | 322 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until Aug. 1, 2017, then callable at 102.75
|
| Equity clawback: | 35% at 105.5 until Aug. 1, 2016
|
| Change-of-control put: | 101%
|
| Trade date: | July 23
|
| Settlement date: | July 26
|
| Ratings: | Moody's: B3
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| 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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