Published on 10/1/2018 in the Prospect News High Yield Daily.
New Issue: Matador Resources sells upsized $300 million tap of 5 7/8% notes due 2026 at 100.5
By Paul A. Harris
Portland, Ore., Oct. 1 – Matador Resources Co. priced an upsized $300 million add-on to its 5 7/8% senior notes due Sept. 15, 2026 (B2/BB-) at 100.5 to yield 5.772% in a Monday drive-by, according to market sources.
The issue size was increased from $250 million.
The reoffer price came on top of price talk. BofA Merrill Lynch was the left bookrunner. Scotia Capital, Wells Fargo Securities LLC, RBC Capital Markets LLC, BMO Securities and SunTrust Robinson Humphrey Inc. were the joint bookrunners.
The Dallas-based energy exploration and production company plans to use the proceeds to repay debt under its revolving credit facility and for general corporate purposes.
| Issuer: | Matador Resources Co.
|
| Amount: | $300 million, increased from $250 million
|
| Maturity: | Sept. 15, 2026
|
| Security description: | Add-on to 5 7/8% senior notes due Sept. 15, 2026
|
| Left bookrunner: | BofA Merrill Lynch
|
| Joint bookrunners: | Scotia Capital, Wells Fargo Securities LLC, RBC Capital Markets LLC, BMO Securities, SunTrust Robinson Humphrey Inc.
|
| Co-managers: | Comerica, Iberia, Imperial, Northland, Stephens, Stifel
|
| Coupon: | 5 7/8%
|
| Price: | 100.5
|
| Yield: | 5.772%
|
| Spread: | 272 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until Sept. 15, 2021, then callable at a premium
|
| Trade date: | Oct. 1
|
| Settlement date: | Oct. 4
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| Ratings: | Moody's: B2
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| S&P: BB-
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| Distribution: | Rule 144A with registration rights
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| Price talk: | 100.5
|
| Marketing: | Quick to market
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| Original issue: | $750 million priced at par on Aug. 7, 2018
|
| Fungibility: | Add-on notes will become fungible with the original notes
|
| Total issue size: | $1.05 billion
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