By Paul A. Harris
Portland, Ore., Nov. 30 - Saratoga Resources, Inc. priced a $25 million add-on to its 12½% senior secured notes due July 1, 2016 at 98.58 to yield 13% on Thursday, according to an informed source.
Imperial Capital, LLC ran the books for the add-on, which was slightly upsized from $22.5 million.
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 for general corporate purposes, including working capital and capital expenditures.
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: | $25 million, increased from $22.5 million
|
| Proceeds: | $24.6 million
|
| Maturity: | July 1, 2016
|
| Security description: | Add-on to the 12½% senior secured notes due July 1, 2016
|
| Bookrunner: | Imperial Capital, LLC
|
| Coupon: | 12½%
|
| Price: | 98.58
|
| 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 112.5 until Jan. 1, 2014
|
| Trade date: | Nov. 29
|
| Settlement date: | Dec. 4 with accrued interest
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | None
|
| Marketing: | Quick to market
|
| Original issue: | $127.5 million priced at 98.221 to yield 13% in July 2011
|
| Total issue size: | $152.5 million
|
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