By Andrea Heisinger
New York, Aug. 24 - Questar Market Resources, Inc. priced $300 million 6.8% senior notes due March 1, 2020 on Monday to yield Treasuries plus 330 basis points, an informed source said.
The notes (Baa3/BBB+/) priced at 99.822 to yield 6.824%. They have a make-whole call at Treasuries plus 50 bps and feature a change-of-control put of 101%.
The deal came in line with price talk of the mid-to-low 300 bps area, a source close to the deal said.
Active bookrunners were Bank of America Merrill Lynch and J.P. Morgan Securities Inc., with Wells Fargo Securities as passive books.
Co-managers were SunTrust Robinson Humphrey Inc., Barclays Capital Inc., Mitsubishi UFJ Securities, BMO Capital Markets, RBS Securities Inc., SG Americas Securities LLC, TD Securities (USA) LLC and UBS Securities LLC.
Part of the proceeds will be used to buy additional leasehold interests in core operating areas under a purchase agreement, with the remainder going to reduce debt under a revolving credit facility.
The natural gas subsidiary of Questar Corp. is based in Salt Lake City.
| Issuer: | Questar Market Resources, Inc.
|
| Issue: | Senior notes
|
| Amount: | $300 million
|
| Maturity: | March 1, 2020
|
| Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities Inc. (active) Wells Fargo Securities (passive)
|
| Co-managers: | SunTrust Robinson Humphrey Inc., Barclays Capital Inc., Mitsubishi UFJ Securities, BMO Capital Markets, RBS Securities Inc., SG Americas Securities LLC, TD Securities (USA) LLC, UBS Securities LLC
|
| Coupon: | 6.8%
|
| Price: | 99.822
|
| Yield: | 6.824%
|
| Spread: | Treasuries plus 330 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Change-of-control put: | 101%
|
| Trade date: | Aug. 24
|
| Settlement date: | Aug. 31
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB+
|
| Price talk: | Mid-to-low 300 bps
|
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