Published on 7/17/2015 in the Prospect News High Yield Daily.
New Issue: WPX Energy prices downsized $1 billion bullet deal in two $500 million tranches
By Paul A. Harris
Portland, Ore., July 17 – WPX Energy, Inc. priced a downsized $1 billion two-part issuance of non-callable senior notes (Ba1/BB) on Friday, according to an informed source.
The deal was downsized from $1.2 billion.
The issuance included $500 million of 7½% five-year notes that priced at par to yield 7.499%. The yield printed near the wide end of the 7¼% to 7½% yield talk.
The company also priced $500 million of 8¼% eight-year notes at par to yield 8.249%. The yield of the eight-year notes also printed near the wide end of the 8% to 8¼% yield talk.
Joint bookrunner Barclays will bill and deliver. Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, Wells Fargo Securities LLC, Credit Agricole Securities (USA) Inc. and Scotia Capital are also joint bookrunners.
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, 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.
| Issuer: | WPX Energy, Inc.
|
| Amount: | $1 billion, downsized from $1.2 billion
|
| Securities: | Senior notes
|
| Bookrunners: | Barclays (bill and deliver), Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, Wells Fargo Securities LLC, Credit Agricole Securities (USA) Inc., Scotia Capital (USA) Inc.
|
| Joint lead managers: | MUFG, U.S. Bancorp Investments Inc.
|
| Co-managers: | BBVA Securities Inc., RBC Capital Markets LLC, TD Securities (USA) LLC, BB&T Capital Markets, BNP Paribas Securities Corp., BOSC Inc., Credit Suisse Securities (USA) LLC
|
| Trade date: | July 17
|
| Settlement date: | July 22
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BB
|
| Distribution: | SEC registered
|
| Marketing: | Roadshow
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | Aug. 1, 2020
|
| Coupon: | 7½%
|
| Price: | Par
|
| Yield: | 7.499%
|
| Call: | Make-whole call at Treasuries plus 50 bps until one month prior to maturity, then callable at par, otherwise non-callable
|
| Price talk: | 7¼% to 7½%
|
|
|
| Eight-year notes
|
| Amount: | $500 million
|
| Maturity: | Aug. 1, 2023
|
| Coupon: | 8¼%
|
| Price: | Par
|
| Yield: | 8.249%
|
| Call: | Make-whole call at Treasuries plus 50 bps until two months prior to maturity, then callable at par
|
| Price talk: | 8% to 8¼%
|
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