Published on 9/13/2012 in the Prospect News High Yield Daily.
New Issue: Midstates Petroleum sells upsized $600 million eight-year notes at par to yield 10¾%
By Paul A. Harris
Portland, Ore., Sept. 13 - Midstates Petroleum Co. Inc. and Midstates Petroleum Co. LLC priced an upsized $600 million issue of eight-year senior notes (Caa1/B-/) at par to yield 10¾% on Thursday, according to a syndicate source.
The yield printed at the wide end of the 10½% to 10¾% yield talk.
Bank of America Merrill Lynch, SunTrust Robison Humphrey Inc., Goldman Sachs & Co., Morgan Stanley & Co. LLC, RBC Capital Markets, Citigroup Global Markets Inc., Natixis Securities, RBS Securities Inc. and SG CIB were the joint bookrunners for the issue, which was upsized from $550 million.
The Houston-based energy exploration and production company plans to use the proceeds to fund a portion of the pending acquisition of Eagle Energy and to pay down revolver debt and for general corporate purposes.
| Issuer: | Midstates Petroleum Co. Inc. and Midstates Petroleum Co. LLC
|
| Amount: | $600 million, increased from $550 million
|
| Maturity: | Oct. 1, 2020
|
| Securities: | Senior notes
|
| Bookrunners: | Bank of America Merrill Lynch, SunTrust Robison Humphrey Inc., Goldman Sachs & Co., Morgan Stanley & Co. LLC, RBC Capital Markets, Citigroup Global Markets Inc., Natixis Securities, RBS Securities Inc., SG CIB
|
| Co-managers: | Capital One Southcoast, KeyBanc Capital Markets
|
| Coupon: | 10¾%
|
| Price: | Par
|
| Yield: | 10¾%
|
| Spread: | 945 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Oct. 1, 2016, then callable at 105.375, 102.688, par on and after Oct. 1, 2018
|
| Equity clawback: | 35% at 110.75 until Oct. 1, 2015
|
| Change-of-control put: | 101%
|
| Trade date: | Sept. 13
|
| Settlement date: | Oct. 1
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 10½% to 10¾%
|
| Marketing: | Roadshow
|
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