Published on 10/2/2012 in the Prospect News High Yield Daily.
New Issue: Vanguard Natural Resources prices $200 million tap of 7 7/8% notes due 2020 at par
By Paul A. Harris
Portland, Ore., Oct. 2 - Vanguard Natural Resources, LLC and VNR Finance Corp. priced a $200 million add-on to their senior notes due April 1, 2020 (existing ratings Caa1/B-) at par to yield 7 7/8% on Tuesday, according to a syndicate source.
The reoffer price came on top of price talk.
RBC Capital Markets was the left bookrunner for the quick-to-market tap. Citigroup Global Markets Inc., Credit Agricole CIB, Deutsche Bank Securities Inc., RBS Securities Inc., Wells Fargo Securities LLC, J.P. Morgan Securities LLC and UBS Investment Bank were the joint bookrunners.
The Houston-based oil and gas production and development company plans to use the proceeds to repay revolver debt.
| Issuers: | Vanguard Natural Resources, LLC and VNR Finance Corp.
|
| Amount: | $200 million
|
| Maturity: | April 1, 2020
|
| Security description: | Add-on to 7 7/8% senior notes due April 1, 2020
|
| Left bookrunner: | RBC Capital Markets
|
| Joint bookrunners: | Citigroup Global Markets Inc., Credit Agricole CIB, Deutsche Bank Securities Inc., RBS Securities Inc., Wells Fargo Securities LLC, J.P. Morgan Securities LLC, UBS Investment Bank
|
| Senior co-managers: | BMO Securities, Scotia Capital
|
| Co-managers: | Comerica Securities, Lloyds TSB, Natixis, US Bancorp
|
| Coupon: | 7 7/8%
|
| Price: | Par
|
| Yield: | 7 7/8%
|
| Call features: | Make-whole call at Treasuries plus 50 bps until April 1, 2016, then callable at 103.938, 101.969, par on and after April 1, 2018
|
| Equity clawback: | 35% at 107.875 until April 1, 2015
|
| Change-of-control put: | 101%
|
| Trade date: | Oct. 2
|
| Settlement date: | Oct. 9 with accrued interest
|
| Existing ratings: | Moody's: Caa1
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| Standard & Poor's: B-
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| Distribution: | SEC registered
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| Price talk: | Par area
|
| Marketing: | Quick to market
|
| Original issue: | $350 million issue priced at 99.274 to yield 8% on March 30, 2012
|
| Total issue size: | $550 million
|
| Fungibility: | Add-on notes to be immediately fungible
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