By Paul A. Harris
Portland, Ore., April 16 - Athlon Energy Inc. priced an upsized $650 million issue of eight-year senior notes (B3/CCC+/) at par to yield 6% on Wednesday, according to a syndicate source.
The deal was upsized from $500 million.
The yield printed at the tight end of the 6% to 6¼% yield talk.
Citigroup Global Markets Inc., BofA Merrill Lynch, Wells Fargo Securities LLC and UBS Securities LLC were the joint physical bookrunners.
The Fort Worth, Texas-based independent oil and gas exploration and production company plans to use the proceeds to partially fund acquisitions of certain producing properties and undeveloped acreage.
To the extent that certain acquisitions don't close, the company will redeem $250 million of the notes at par plus accrued interest.
Proceeds resulting from the $150 million upsizing of the deal will be used for general corporate purposes.
The issuing entities were Athlon Holdings LP and its co-issuer and wholly owned subsidiary, Athlon Finance Corp.
| Issuer: | Athlon Holdings LP (Athlon Energy Inc.)
|
| Amount: | $650 million, increased from $500 million
|
| Maturity: | May 1, 2022
|
| Securities: | Senior notes
|
| Joint physical bookrunners: | Citigroup Global Markets Inc., BofA Merrill Lynch, Wells Fargo Securities LLC
|
| Joint bookrunners: | Credit Agricole CIB, RBC Capital Markets, Scotia Capital, UBOC, UBS Securities LLC, Goldman Sachs & Co.
|
| Co-managers: | Apollo Global Securities, Barclays, Credit Suisse Securities (USA) LLC, Huntington
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Spread: | 380 bps
|
| Price talk: | 6% to 6¼%
|
| First call: | May 1, 2017 at 104.5
|
| Equity clawback: | 35% at 106 until May 1, 2017
|
| Change-of-control put: | 101%
|
| Trade date: | April 16
|
| Settlement date: | May 1
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A for life
|
| Marketing: | Quick to market
|
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