Published on 1/16/2013 in the Prospect News High Yield Daily.
New Issue: Atlas Resource prices upsized $275 million eight-year notes at par to yield 7¾%
By Paul A. Harris
Portland, Ore., Jan. 16 - Atlas Energy Holdings Operating Co., LLC and Atlas Resource Finance Corp. priced an upsized $275 million issue of eight-year senior notes (Caa1/B-/) at par to yield 7¾% on Wednesday, according to a market source.
The yield printed at the wide end of the 7½% to 7¾% yield talk.
J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Wells Fargo Securities LLC, Deutsche Bank Securities Inc. and Bank of America Merrill Lynch were the joint bookrunners for the deal, which was upsized from $250 million.
The Pittsburgh-based oil and gas exploration and production master limited partnership plans to use the proceeds to repay debt.
| Issuers: | Atlas Energy Holdings Operating Co., LLC and Atlas Resource Finance Corp.
|
| Amount: | $275 million, increased from $250 million
|
| Maturity: | Jan. 15, 2021
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Wells Fargo Securities LLC, Deutsche Bank Securities Inc., Bank of America Merrill Lynch
|
| Co-managers: | ABN Amro Securities (USA) LLC, C&Co/PrinceRidge LLC, Comerica Securities Inc., Natixis Securities Americas LLC, RBC Capital Markets LLC, Santander Investment Securities Inc., SunTrust Robinson Humphrey Inc.
|
| Coupon: | 7¾%
|
| Price: | Par
|
| Yield: | 7¾%
|
| Spread: | 634 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Jan. 15, 2017, then callable at 103.875, 101.938, par on and after Jan. 15, 2019
|
| Equity clawback: | 35% at 107.75 until Jan. 15, 2016
|
| Change-of-control put: | 101%
|
| Trade date: | Jan. 16
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| Settlement date: | Jan. 23
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| Ratings: | Moody's: Caa1
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| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 7½% to 7¾%
|
| Marketing: | Roadshow
|
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