By Paul A. Harris
St. Louis, June 18 - Quicksilver Resources Inc. priced an upsized $600 million issue of 11¾% 6.5-year senior notes (B2/B-) at 97.717 to yield 12½% on Thursday, according to an informed source.
The yield was printed at the wide end of the 12¼% to 12½% yield talk. The price came within price talk which set out approximately 3 points of original issue discount.
Credit Suisse, Deutsche Bank Securities Inc. and J.P. Morgan Securities Inc. were joint bookrunners for the deal, which was upsized from $425 million.
Proceeds, along with proceeds from sale of an interest in oil and gas leases, royalty interests, mineral interests and related assets to Eni US Operating Co. Inc. and Eni Petroleum US LLC, will be used to repay the remaining debt under the company's second-lien term loan facility due 2013.
The issuer is a Fort Worth, Texas-based natural gas and crude oil exploration and production company engaged in the development and acquisition of long-lived, unconventional natural gas reserves, including coalbed methane, shale gas, and tight sands gas in North America.
| Issuer: | Quicksilver Resources Inc.
|
| Face amount: | $600 million (increased from $425 million)
|
| Maturity: | Jan. 1, 2016
|
| Security description: | Senior notes
|
| Bookrunners: | Credit Suisse, Deutsche Bank Securities Inc., J.P. Morgan Securities Inc.
|
| Coupon: | 11¾%
|
| Price: | 97.717
|
| Yield: | 12½%
|
| Spread: | 916 bps
|
| Call features: | Make-whole at Treasuries plus 50 bps for first four years, then callable at a premium
|
| Trade date: | June 18
|
| Settlement date: | June 25
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B-
|
| Distribution: | SEC registered
|
| Price talk: | 12¼% to 12½% with approximately 3 points of OID
|
© 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.
