Published on 2/3/2011 in the Prospect News High Yield Daily.
New Issue: Basic Energy upsizes to $275 million, prices eight-year notes at par to yield 7¾%
By Paul A. Harris
Portland, Ore., Feb. 3 - Basic Energy Services, Inc. priced an upsized $275 million issue of eight-year senior notes (B3/B-/) at par to yield 7¾% on Thursday, according to an informed source.
The yield printed at the tight end of the 7 7/8% price talk.
Bank of America Merrill Lynch and Wells Fargo Securities were the joint bookrunners for the issue, which was upsized from $250 million.
Proceeds will be used to fund the tender and consent solicitation for the company's 11 5/8% senior secured notes due 2014.
Basic Energy Services is a Midland, Texas-based provider of well site services to oil and gas drilling and producing companies.
Issuer: | Basic Energy Services, Inc.
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Amount: | $275 million, increased from $250 million
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Maturity: | Feb. 15, 2019
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Securities: | Senior notes
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Bookrunners: | Bank of America Merrill Lynch, Wells Fargo Securities
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Joint lead manager: | Capital One Southcoast
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Co-manager: | Comerica Investments
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Coupon: | 7¾%
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Price: | Par
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Yield: | 7¾%
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Spread: | 464 bps
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Call features: | Make-whole call at Treasuries plus 50 bps until Feb. 15, 2015, then callable at 103.875, 101.938, par on and after Feb. 1, 2017
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Equity clawback: | 35% at 107.75 until Feb. 15, 2014
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Change-of-control put: | 101%
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Trade date: | Feb. 3
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Settlement date: | Feb. 15
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Ratings: | Moody's: B3
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| Standard & Poor's: B-
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Distribution: | Rule 144A with registration rights
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Price talk: | 7 7/8% area
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Marketing: | Brief roadshow
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