By Paul A. Harris
Portland, Ore., Feb. 8 – Great Western Petroleum, LLC and Great Western Finance Corp. placed a downsized and restructured $235 million tranche of 12% 4.5-year senior secured second-lien notes at 97.5 to yield 12.734% on Monday, according to a market source.
The maturity of the notes decreased to 4.5 years from five years.
The coupon and yield came on top of revised talk. Original talk specified an 11¼% coupon at 97.5.
Bookrunner Barclays will bill and deliver. Citigroup Global Markets Inc. was also a bookrunner. Passive bookrunners were MUFG, Truist Securities Inc., Credit Suisse Securities (USA) LLC, KeyBanc Capital Markets Inc., PNC Capital Markets LLC and Citizens Capital Markets Inc.
The offering size decreased from $350 million.
The Denver-based energy exploration and production company plans to use the proceeds to redeem all of its 2021 notes and to pay down its reserve-based loan.
An additional $75 million of notes will be issued in connection with an exchange of all of the company’s senior notes due 2025.
| Issuers: | Great Western Petroleum, LLC and Great Western Finance Corp.
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| Amount: | $235 million
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| Maturity: | Sept. 1, 2025 (tenor decreased to 4.5 years from five years)
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| Securities: | Senior secured second-lien notes
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| Bookrunners: | Barclays (bill and deliver) and Citigroup Global Markets Inc.
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| Passive bookrunners: | MUFG, Truist Securities Inc., Credit Suisse Securities (USA) LLC, KeyBanc Capital Markets Inc., PNC Capital Markets LLC and Citizens Capital Markets Inc.
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| Co-managers: | CIT Capital Securities LLC, Macquarie Capital (USA) Inc. and SG Americas Securities LLC
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| Coupon: | 12%
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| Price: | 97.5
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| Yield to maturity: | 12.734%
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| Spread: | 1,232 bps
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| First call: | March 1, 2023 at 106
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| Special M&A call: | 110% through March 1, 2022 (premium increased from 105%)
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| Trade date: | Feb. 8
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| Settlement date: | Feb. 22
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 12% coupon at 97.5, revised from 11¼% at 97.5
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| Marketing: | Roadshow
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