Published on 3/14/2024 in the Prospect News High Yield Daily.
New Issue: Vital Energy prices upsized $800 million eight-year senior notes at par to yield 7 7/8%
By Paul A. Harris
Portland, Ore., March 14 – Vital Energy Inc. priced an upsized $800 million issue of eight-year senior notes (B2/B) at par to yield 7 7/8% in a Thursday drive-by, market sources said.
The issue saw a big upsize from $575 million.
The yield printed at the tight end of yield talk in the 8% area. Initial guidance was in the low-8% area.
Joint active bookrunners were BofA Securities Inc., Wells Fargo Securities LLC, Citigroup Global Markets Inc. and PNC Capital Markets LLC. Joint bookrunners were Truist Securities Inc., Mizuho Securities USA Inc., KeyBanc Capital Markets Inc., U.S. Bancorp Investments Inc. and Capital One Securities Inc.
The Tulsa, Okla.-based energy producer plans to use the proceeds plus corporate liquidity to fund a tender offer involving its 10 1/8% senior notes due 2028 and its 9¾% senior notes due 2030, and/or to repay debt under its senior secured credit facility.
| Issuer: | Vital Energy, Inc.
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| Amount: | $800 million, increased from $575 million
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| Issue: | Senior notes
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| Maturity: | April 15, 2032
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| Joint active bookrunners: | BofA Securities Inc., Wells Fargo Securities LLC, Citigroup Global Markets Inc. and PNC Capital Markets LLC
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| Joint bookrunners: | Truist Securities Inc., Mizuho Securities USA Inc., KeyBanc Capital Markets Inc., U.S. Bancorp Investments Inc. and Capital One Securities Inc.
|
| Co-managers: | BOK Financial Securities Inc., Amegy and Comerica Securities Inc.
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| Coupon: | 7 7/8%
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| Price: | Par
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| Yield: | 7 7/8%
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| Spread: | 356 bps
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| First call: | April 15, 2027 at 103.938
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| Trade date: | March 14
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| Settlement date: | March 28
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| Ratings: | Moody’s: B2
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| S&P: B
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 8% area
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| Marketing: | Drive-by
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