WPX Energy starts roadshow for $1.2 billion two-part bullet offering backing RKI acquisition

By Paul A. Harris

Portland, Ore., July 14 – WPX Energy, Inc. began a roadshow on Tuesday for a $1.2 billion two-part offering of non-callable senior notes (existing ratings Ba1/BB), according to an informed source.

A global investor call, as well as conference calls, were scheduled for Tuesday. Group lunches are scheduled on Wednesday in New York and on Thursday in Boston, and the deal is set to price thereafter.

The offer includes tranches of five-year notes, which feature a make-whole call until one month prior to maturity and are callable at par thereafter.

The deal also includes eight-year notes, which feature a make-whole call until two months prior to maturity and are callable at par thereafter.

Tranche sizes remain to be determined.

Bookrunner Barclays will bill and deliver for the public offering. Other syndicate names are expected to be announced.

The notes in both tranches feature 101% poison puts.

Proceeds, along with the proceeds from common equity and convertible mandatory preferred offerings, will be used to fund the acquisition of Oklahoma City-based energy company RKI Exploration & Production, LLC and to repay certain acquired debt.

If the acquisition is not consummated prior to Nov. 30, 2015, the issuer intends to redeem the notes at par plus accrued interest.

WPX Energy is a Tulsa, Okla.-based oil and natural gas exploration and production company.

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