Approach Resources talks $250 million eight-year notes to yield 6¾%-7%

By Paul A. Harris and Aleesia Forni

Virginia Beach, Va., June 6 - Approach Resources Inc. set talk for its proposed $250 million offering of eight-year senior notes (confirmed B3/expected B-) to yield 6¾% to 7%, according to a market source.

Books close at 2:30 p.m. ET on Thursday, with pricing expected thereafter.

J.P. Morgan Securities LLC, RBC Capital Markets LLC and KeyBanc Capital Markets LLC are the joint bookrunners.

Wells Fargo Securities LLC, BofA Merrill Lynch, Scotia Capital and Tudor Pickering Holt & Co. are the co-managers for the Securities and Exchange Commission-registered transaction.

The notes will be non-callable for three years and feature a special change-of-control redemption at 110 until June 2014.

Proceeds will be used to refinance the company's revolver.

Approach Resources is a Fort Worth-based oil and gas exploration and production company.

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