By Paul A. Harris
Portland, Ore., May 16 - Atlas Energy Holdings Operating Co., LLC and Atlas Resource Finance Corp. priced a $100 million add-on to their 7¾% senior notes due Jan. 15, 2021 (Caa1/B-/) at 99.5 to yield 7.846% in a quick-to-market Friday transaction, according to an informed source.
The reoffer price came at the rich end of the 99.25 to 99.5 price talk.
Wells Fargo Securities LLC was the left bookrunner. Deutsche Bank Securities Inc. was the joint bookrunner.
The Pittsburgh-based oil and gas exploration and production master limited partnership plans to use the proceeds to fund a portion of its previously announced acquisition of oil assets in the Rangely Field in Northwest Colorado. Prior to funding the acquisition, some or all of the proceeds may be used for general partnership purposes.
| Issuers: | Atlas Energy Holdings Operating Co., LLC and Atlas Resource Finance Corp.
|
| Amount: | $100 million
|
| Maturity: | Jan. 15, 2021
|
| Security description: | Add-on to 7¾% senior notes
|
| Left bookrunner: | Wells Fargo Securities, LLC
|
| Joint bookrunner: | Deutsche Bank Securities Inc.
|
| Coupon: | 7¾%
|
| Price: | 99.5
|
| Yield: | 7.846%
|
| Spread: | 586 bps
|
| First call: | Jan. 15, 2017 at 103.875
|
| Equity clawback: | 35% at 107.75 until Jan. 15, 2016
|
| Change-of-control put: | 101%
|
| Trade date: | May 16
|
| Settlement date: | June 2 with accrued interest
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 99.25 to 99.5
|
| Marketing: | Quick to market
|
| Original issue: | $275 million priced at par in January 2013
|
| Fungibility: | Upon registration the add-on notes will be fungible with the original notes
|
| Total issue size: | $375 million
|
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