By Paul A. Harris
Portland, Ore., July 7 - Saratoga Resources, Inc. raised $125.23 million with the Thursday placement of its 12½% five-year senior secured notes, according to a market source.
The non-rated notes priced at 98.221 to yield 13%, in line with price talk which specified a 12½% coupon at a discount to yield 13%.
The face amount of the deal was upsized to $127.5 million from $125 million in order to raise $125 million of proceeds, factoring in the discount.
Imperial Capital, LLC ran the books.
The notes feature a make-whole call at Treasuries plus 50 basis points until Jan. 1, 2014, at which time they become callable at 106.25. A special call provision allows the issuer to redeem 10% of the issue annually during the non-call period at that initial call premium of 106.25.
Proceeds will be used to repay substantially all of the company's existing debt, including all debt under its existing credit facilities.
The notes offering was decreased from the originally contemplated $150 million, with $30 million of proceeds shifted to a PIPE offering.
Saratoga Resources is an oil & gas development and exploration company with operations in Southern Louisiana and offices in Houston and Covington, La.
| Issuer: | Saratoga Resources, Inc.
|
| Face amount: | $127.5 million, upsized from $125 million
|
| Proceeds: | $125.23 million
|
| Maturity: | July 1, 2016
|
| Securities: | Senior secured notes
|
| Bookrunner: | Imperial Capital, LLC
|
| Coupon: | 12½%
|
| Price: | 98.221
|
| Yield: | 13%
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Jan. 1, 2014, then callable at 106.25
|
| Special call: | 10% of the issue is redeemable annually during the non-call period at 106.25
|
| Equity clawback: | 35% at 112.50 until Jan. 1, 2014
|
| Trade date: | July 7
|
| Settlement date: | July 12
|
| Rating: | Non-rated
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 12½% coupon at a discount to yield 13%
|
| Marketing: | Roadshow
|
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