Published on 5/23/2013 in the Prospect News High Yield Daily.
New Issue: Midstates Petroleum prices $700 million 9¼% eight-year notes at par
By Paul A. Harris
Portland, Ore., May 23 - Midstates Petroleum Co., Inc. and Midstates Petroleum Co. LLC priced a $700 million issue of eight-year senior notes (Caa1/B-/) at par to yield 9¼% on Thursday, according to a syndicate source.
The yield printed 25 basis points beyond the wide end of yield talk set in the 8 7/8% area.
Morgan Stanley & Co. LLC and SunTrust Robinson Humphrey Inc. were joint global coordinators and joint bookrunners. BofA Merrill Lynch, RBC Capital Markets LLC, SG CIB, Citigroup Global Markets Inc., Goldman Sachs & Co., Natixis Securities Americas LLC and RBS Securities Inc. were joint bookrunners.
The Houston-based independent exploration and production company plans to use the proceeds to fund the purchase of producing properties as well as developed and undeveloped acreage in the Anadarko Basin in Texas and Oklahoma from Panther Energy LLC and its partners Red Willow Mid-Continent LLC and LINN Energy Holdings LLC.
| Issuer: | Midstates Petroleum Co., Inc. and Midstates Petroleum Co. LLC
|
| Amount: | $700 million
|
| Maturity: | June 1, 2021
|
| Securities: | Senior notes
|
| Global coordinators, bookrunners: | Morgan Stanley & Co. LLC, SunTrust Robinson Humphrey Inc.
|
| Joint bookrunners: | BofA Merrill Lynch, RBC Capital Markets LLC, SG CIB, Citigroup Global Markets Inc., Goldman Sachs & Co., Natixis Securities Americas LLC, RBS Securities Inc.
|
| Co-managers: | Capital One Southcoast Inc., KeyBanc Capital Markets Inc., Scotia Capital
|
| Coupon: | 9¼%
|
| Price: | Par
|
| Yield: | 9¼%
|
| Spread: | 766 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until June 1, 2016, then callable at 106.938, 104.625, 102.313, par on and after June 1, 2019
|
| Equity clawback: | 35% at 109.25 until June 1, 2016
|
| Change-of-control put: | 101%
|
| Trade date: | May 23
|
| Settlement date: | May 31
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 8 7/8% area
|
| Marketing: | Roadshow
|
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