By Paul A. Harris
Portland, Ore., July 13 – Extraction Oil & Gas Holdings, LLC and Extraction Finance Corp. priced an upsized $550 million issue of five-year senior notes (Caa1/B-) at par to yield 7 7/8% on Wednesday, according to a syndicate source.
The issue size was increased from $500 million.
The yield printed at the tight end of yield talk in the 8% area. Official talk was tight to initial guidance in the low-to-mid 8% yield context.
Barclays was the lead left bookrunner. Goldman Sachs & Co., RBC Capital Markets and Wells Fargo Securities LLC were the joint bookrunners.
The Denver-based oil and gas producer plans to use the proceeds to repay and retire its second-lien term loan, to pay the associated prepayment premium and to repay debt under its existing revolver.
Extraction Oil & Gas is focused on Central Colorado’s Wattenberg Field.
Issuers: | Extraction Oil & Gas Holdings, LLC and Extraction Finance Corp.
|
Amount: | $550 million
|
Maturity: | July 15, 2021
|
Securities: | Senior notes
|
Left bookrunner: | Barclays
|
Joint bookrunners: | Goldman Sachs & Co., RBC Capital Markets, Wells Fargo Securities LLC
|
Senior co-managers: | KeyBanc Capital Markets, SunTrust Robinson Humphrey Inc.
|
Co-managers: | ABN Amro, Bank of Oklahoma, Fifth Third Securities, Moelis & Co., MUFG
|
Coupon: | 7 7/8%
|
Price: | Par
|
Yield: | 7 7/8%
|
First call: | July 15, 2018 at 103.938
|
Equity clawback: | 35% at 107.875 until July 15, 2018
|
Change-of-control put: | 101%
|
Trade date: | July 13
|
Settlement date: | July 18
|
Ratings: | Moody's: Caa1
|
| S&P: B-
|
Distribution: | Rule 144A and Regulation S for life
|
Price talk: | 8% area
|
Marketing: | Roadshow
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.