Published on 11/3/2011 in the Prospect News High Yield Daily.
New Issue: SM Energy sells upsized $350 million 10-year notes at par to yield 6½%
By Paul A. Harris
Portland, Ore., Nov. 3 - SM Energy Co. priced an upsized $350 million issue of 10-year senior notes (B1/BB/) at par to yield 6½% on Thursday, according to an informed source.
The yield printed at the wide end of the 6 3/8% to 6½% price talk.
Wells Fargo Securities LLC was the left bookrunner for the quick-to-market issue, which was upsized from $300 million. Bank of America Merrill Lynch and J.P. Morgan Securities LLC were the joint bookrunners.
The Denver-based oil and gas exploration and production company plans to use the proceeds to repay debt, which may include the redemption of $287.5 million 3½% convertible notes, and for general corporate purposes.
| Issuer: | SM Energy Co.
|
| Amount: | $350 million, increased from $300 million
|
| Maturity: | Nov. 15, 2021
|
| Securities: | Senior notes
|
| Left bookrunner: | Wells Fargo Securities LLC
|
| Joint bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities LLC
|
| Senior co-managers: | Barclays Capital Inc., Banco Bilbao Vizcaya Argentaria SA, Comerica Securities, Inc., RBC Capital Markets LLC
|
| Co-managers: | BOSC, Inc., Capital One Southcoast, Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., Howard Weil Inc., KeyBanc Capital Markets Inc., Lloyds Securities Inc., Scotia Capital (USA) Inc., U.S. Bancorp Investments Inc.
|
| Coupon: | 6½%
|
| Price: | Par
|
| Yield: | 6½%
|
| Spread: | 445 bps
|
| Call features: | Callable on Nov. 15, 2016 at 103.25, 102.167, 101.083, par on and after Nov. 15, 2019
|
| Equity clawback: | 35% at 106.5 until Nov. 15, 2014
|
| Trade date: | Nov. 3
|
| Settlement date: | Nov. 8
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 6 3/8% to 6½%
|
| Marketing: | Quick to market
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
