By Paul A. Harris
Portland, Ore., Feb. 2 – Berry Petroleum Co., LLC priced an upsized $400 million issue of eight-year senior notes (B3/B+) at par to yield 7% on Friday, according to market sources.
The issue size was increased from $350 million.
The yield printed at the wide end of the 6¾% to 7% yield talk, and wide of the 6½% to 6¾% early guidance.
Goldman Sachs & Co. was the left bookrunner for the 144A and Regulation S for life deal. Wells Fargo Securities LLC, BMO Capital Markets, Morgan Stanley & Co. LLC, UBS Investment Bank and KeyBanc Capital Markets were the joint bookrunners.
The Bakersfield, Calif.-based company plans to use the proceeds to pay down its revolving credit facility and for general corporate purposes.
Berry Petroleum owns and operates oil and gas properties in California, Colorado, Utah, Kansas and Texas.
| Issuer: | Berry Petroleum Co., LLC
|
| Amount: | $400 million, increased from $350 million
|
| Maturity: | Feb. 15, 2026
|
| Securities: | Senior notes
|
| Left bookrunner: | Goldman Sachs & Co.
|
| Joint bookrunners: | Wells Fargo Securities LLC, BMO Capital Markets Corp., Morgan Stanley & Co. LLC, UBS Securities LLC, KeyBanc Capital Markets
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Spread: | 417 bps
|
| First call: | Feb. 15, 2021 at 105.25
|
| Equity clawback: | 35% at 107 until Feb. 15, 2021
|
| Trade date: | Feb. 2
|
| Settlement date: | Feb. 8
|
| Ratings: | Moody's: B3
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6¾% to 7%
|
| Marketing: | Roadshow
|
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