Published on 9/7/2016 in the Prospect News High Yield Daily.
New Issue: SM Energy prices $500 million 10-year notes at par to yield 6¾%
By Paul A. Harris
Portland, Ore., Sept. 7 – SM Energy Co. priced a $500 million issue of 10-year senior notes (B3/B+) at par to yield 6¾% on Wednesday, according to a syndicate source.
The yield printed at the tight end of the 6¾% to 7% yield talk. Initial guidance had the deal coming with a yield in the low 7% context.
BofA Merrill Lynch was the left bookrunner. Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Barclays, BBVA and RBC Capital Markets were joint bookrunners.
The energy company plans to use the proceeds to finance 100% of the membership interests in JPM EOC Opal, LLC and for general corporate purposes.
| Issuer: | SM Energy Co.
|
| Amount: | $500 million
|
| Maturity: | Sept. 15, 2026
|
| Securities: | Senior notes
|
| Left bookrunner: | BofA Merrill Lynch
|
| Joint bookrunners: | Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Barclays, BBVA, RBC Capital Markets
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Spread: | 521 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps until Sept. 15, 2021, then callable at 103.375
|
| Trade date: | Sept. 7
|
| Settlement date: | Sept. 12
|
| Ratings: | Moody's: B3
|
| S&P: B+
|
| Distribution: | SEC registered
|
| Price talk: | 6¾% to 7%
|
| Marketing: | Quick to market
|
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