By Paul A. Harris
Portland, Ore., Jan. 10 – Laredo Petroleum, Inc. priced an upsized $1 billion of senior notes (B3/B+) in two tranches on Friday, according to market sources.
The deal included $600 million of five-year notes, which priced at par to yield 9½%. The yield came at the wide end of the 9¼% to 9½% yield talk and in the middle of early guidance in the 9½% area.
Laredo Petroleum also priced $400 million of eight-year notes at par to yield 10 1/8%, at the wide end of yield talk in the 10% area, which was also the early guidance.
The overall amount of issuance was increased from $900 million.
BofA Securities Inc. was the left bookrunner. Joint bookrunners were Wells Fargo Securities LLC, BMO Capital Markets Corp., Goldman Sachs & Co. LLC, Barclays and Capital One Securities Inc.
Joint lead managers were SG CIB, ABN Amro Inc., Citigroup Global Markets Inc. and Scotia Capital (USA) Inc.
The Tulsa, Okla.-based independent energy company plans to use the proceeds to refinance $450 million of 5 5/8% senior notes due January 2022 and $350 million of 6¼% senior notes due March 2023 and for general corporate purposes, including partial repayment of its senior secured credit facility.
| Issuer: | Laredo Petroleum, Inc.
|
| Amount: | $1 billion, increased from $900 million
|
| Securities: | Senior notes
|
| Left bookrunner: | BofA Securities Inc.
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| Joint bookrunners: | Wells Fargo Securities LLC, BMO Capital Markets Corp., Goldman Sachs & Co. LLC, Barclays and Capital One Securities Inc.
|
| Joint lead managers: | SG CIB, ABN Amro Inc., Citigroup Global Markets Inc. and Scotia Capital (USA) Inc.
|
| Co-managers: | BBVA Securities Inc., Credit Suisse Securities (USA) LLC, Comerica Securities Inc., SunTrust Robinson Humphrey Inc. and BOK Financial
|
| Trade date: | Jan. 10
|
| Settlement date: | Jan. 24
|
| Ratings: | Moody's: B3
|
| S&P: B+
|
| Distribution: | SEC registered
|
| Marketing: | Roadshow
|
|
|
| Five-year notes
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| Amount: | $600 million
|
| Maturity: | Jan. 15, 2025
|
| Coupon: | 9½%
|
| Price: | Par
|
| Yield: | 9½%
|
| Spread: | 787 bps
|
| Call protection: | Two years
|
| Price talk: | 9¼% to 9½%
|
|
|
| Eight-year notes
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| Amount: | $400 million
|
| Maturity: | Jan. 15, 2028
|
| Coupon: | 10 1/8%
|
| Price: | Par
|
| Yield: | 10 1/8%
|
| Spread: | 836 bps
|
| Call protection: | Three years
|
| Price talk: | 10% area
|
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