New Issue: QEP upsizes to $625 million 6 7/8% 10.5-year notes priced at 99.074 to yield 7%

By Paul A. Harris

St. Louis, Aug. 11 - QEP Resources, Inc. priced an upsized $625 million issue of 6 7/8% 10.5-year senior notes (Ba1/BB+) at 99.074 to yield 7% on Wednesday, according to a prospectus the company filed with the Securities and Exchange Commission.

The yield printed at the tight end of the 7% to 7 1/8% price talk, market sources said.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, BMO Capital Markets Corp., J.P. Morgan Securities Inc. and Wells Fargo Securities, LLC were the joint bookrunners for the quick-to-market deal, which was upsized from $500 million.

Proceeds will be used to repay bank debt.

QEP is a Denver-based natural gas-focused energy holding company.

Issuer:	QEP Resources, Inc.
Face amount:	$625 million (increased from $500 million)
Proceeds:	$619.213 million
Maturity:	March 1, 2021
Securities:	Senior notes
Bookrunners:	Deutsche Bank Securities Inc., Bank of America Merrill Lynch, BMO Capital Markets Corp., J.P. Morgan Securities Inc., Wells Fargo Securities, LLC
Co-managers:	SunTrust Robinson Humphrey, Inc., U.S. Bancorp Investments, Inc., Mitsubishi UFJ Securities (USA), Inc., BBVA Securities Inc., RBS Securities Inc., TD Securities (USA) LLC, SG Americas Securities, LLC, Goldman, Sachs & Co.
Coupon:	6 7/8%
Price:	99.074
Yield:	7%
Call protection:	Make-whole call at Treasuries plus 50 bps
Trade date:	Aug. 11
Settlement date:	Aug. 16
Ratings:	Moody's: Ba1
	Standard & Poor's: BB+
Distribution:	SEC registered
Price talk:	7% to 7 1/8%
Marketing:	Quick-to-market

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.