New Issue: Murphy Oil sells $550 million eight-year notes at par to yield 5 7/8%

By Paul A. Harris

Portland, Ore., Nov. 13 – Murphy Oil Corp. priced a $550 million issue of eight-year senior notes (expected ratings Ba2/BB+/BB+) at par to yield 5 7/8% in a Wednesday drive-by, according to market sources.

Initial talk had the public deal coming to yield in the 6% to 6¼% area, a trader said.

J.P. Morgan Securities LLC, BofA Securities Inc. and MUFG were physical bookrunners. Joint bookrunners were DNB, Regions Securities Inc., Scotia Capital (USA) Inc. and Wells Fargo Securities LLC.

The El Dorado, Ark.-based oil and gas exploration and production company plans to use the proceeds to fund cash tender offers for up to $550 million of the company’s 4% senior notes due 2022 and 3.7% senior notes due 2022.

Issuer:	Murphy Oil Corp.
Amount:	$550 million
Maturity:	Dec. 1, 2027
Securities:	Senior notes
Physical bookrunners:	J.P. Morgan Securities LLC, BofA Securities Inc. and MUFG
Joint bookrunners:	DNB, Regions Securities Inc., Scotia Capital (USA) Inc. and Wells Fargo Securities LLC
Co-managers:	BMO Capital Markets Corp., Capital One Securities Inc., HSBC Securities (USA) Inc., SMBC Nikko Securities America Inc., Hancock Whitney, SG Americas Securities LLC and Standard Chartered
Coupon:	5 7/8%
Price:	Par
Yield:	5 7/8%
Spread:	406 bps
First call:	Make-whole call at Treasuries plus 50 bps until Dec. 1, 2022, then callable at 102.938
Trade date:	Nov. 13
Settlement date:	Nov. 27
Expected ratings:	Moody's: Ba2
	S&P: BB+
	Fitch: BB+
Distribution:	SEC registered

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