Newfield Exploration says deal upsized on investor appetite, priced in good market conditions

By Andrea Heisinger

New York, June 20 - The upsized $1 billion of 12-year notes from Newfield Exploration Co. was a successful deal, priced due to ideal market conditions on Tuesday, a source from the energy company said on Wednesday.

"We thought it went great," said Newfield's vice president of investor relations, Steve Campbell. "It was good timing - good in equities, commodities, all of the markets were up."

The company is "always looking at the market," Campbell said.

Newfield opted to jump on an active day during which nine other high-grade companies sold high-grade bonds. Newfield's deal was split-rated (Ba1/BBB-/BB+), but priced off the investment-grade syndicate desk.

The sale was increased in size by $250 million and priced at the tight end of both whispered and revised guidance.

"We initially went out with the $750 million, but the (investor) appetite was there, so we decided to do $1 billion," Campbell said.

The 12-year maturity in 2024 was decided upon, he said, because "if you look at [Newfield's] overall debt structure, it's every two years. It just made sense."

Proceeds are being used to purchase up to $550 million of notes due 2016 in a tender offer, to repay a portion of borrowings under credit arrangements used to fund the redemption of 6.625% senior subordinated notes and for general working capital purposes.

Newfield Exploration is an independent energy company is based in The Woodlands, Texas.

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