Published on 6/26/2012 in the Prospect News High Yield Daily.
New Issue: SM Energy upsizes to $400 million, prices 10.5-year notes at par to yield 6½%
By Paul A. Harris
Portland, Ore., June 26 - SM Energy Co. priced an upsized $400 million issue of 10.5-year senior notes (B1/BB/) at par to yield 6½% on Tuesday, according to a syndicate source.
The yield printed on top of the yield 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.
Proceeds will be used to repay revolver debt and for general corporate purposes.
SM Energy, a Denver-based independent energy company, is engaged in the acquisition, exploration, development and production of crude oil, natural gas and natural gas liquids.
| Issuer: | SM Energy Co.
|
| Amount: | $400 million, increased from $300 million
|
| Maturity: | Jan. 1, 2023
|
| 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., Johnson Rice & Co. LLC, KeyBanc Capital Markets Inc., Lloyds Securities Inc., Scotia Capital (USA) Inc., Tudor Pickering | Holt & Co. Securities Inc., U.S. Bancorp Investments Inc.
|
| Coupon: | 6½%
|
| Price: | Par
|
| Yield: | 6½%
|
| Spread: | 486 bps
|
| Call features: | Make-whole call until July 1, 2017, then callable at 103.25, 102.167, 101.083, par on and after July 1, 2020
|
| Equity clawback: | 35% at 106.5 until July 1, 2015
|
| Trade date: | June 26
|
| Settlement date: | June 29
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 6½%
|
| Marketing: | Quick to market
|
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