By Paul A. Harris
Portland, Ore., June 12 – Seventy Seven Energy Inc. priced a $500 million issue of eight-year senior notes (B2/B/) at par to yield 6½% on Thursday, according to a syndicate source.
The yield printed at the tight end of the 6½% to 6¾% yield talk.
BofA Merrill Lynch, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC were the joint bookrunners.
Seventy Seven Energy, currently named Chesapeake Oilfield Operating, LLC, is being spun off from Chesapeake Energy Corp.
The Oklahoma City-based oilfield services company plans to use the proceeds to make a cash distribution to COS Holdings, LLC, its direct parent, to repay all debt outstanding under the new revolver to be entered into in connection with the spinoff and for general corporate purposes.
| Issuer: | Seventy Seven Energy Inc.
|
| Amount: | $500 million
|
| Maturity: | July 15, 2022
|
| Securities: | Senior notes
|
| Left bookrunner: | BofA Merrill Lynch
|
| Joint bookrunners: | Morgan Stanley & Co. LLC, Wells Fargo Securities LLC
|
| Co-managers: | Citigroup Global Markets Inc., Credit Agricole CIB, Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey Inc.
|
| Coupon: | 6½%
|
| Price: | Par
|
| Yield: | 6½%
|
| Spread: | 415 bps
|
| First call: | July 15, 2017 at 104.875
|
| Trade date: | June 12
|
| Settlement date: | June 26
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 6½% to 6¾%
|
| Marketing: | Roadshow
|
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