Published on 4/25/2017 in the Prospect News High Yield Daily.
New Issue: Bill Barrett prices $275 million eight-year notes at par to yield 8¾%
By Paul A. Harris
Portland, Ore., April 25 – Bill Barrett Corp. priced a $275 million issue of eight-year senior notes (Caa2/CCC+) at par to yield 8¾% on Tuesday, according to market sources.
The yield printed in the middle of yield talk in the 8¾% area and cheap to initial guidance in the 8½% area.
BofA Merrill Lynch, J.P. Morgan Securities LLC, BMO Securities, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Wells Fargo Securities LLC were the joint bookrunners.
The Denver-based oil and natural gas developer plans to use the proceeds, together with cash on hand, to take out its 7 5/8% senior notes due 2019 and its 5% convertible notes due 2028.
| Issuer: | Bill Barrett Corp.
|
| Amount: | $275 million
|
| Maturity: | June 15, 2025
|
| Securities: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC, BMO Securities, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Wells Fargo Securities LLC
|
| Co-managers: | Lazard, BBVA, Comerica, Santander, Scotia, U.S. Bancorp Investments Inc., Barclays, BOK, Coker & Palmer, Goldman Sachs & Co., Johnson Rice, KeyBanc, KLR, Landenburg, Macquarie, Seaport Global
|
| Coupon: | 8¾%
|
| Price: | Par
|
| Yield: | 8¾%
|
| Spread: | 650 bps
|
| Call protection: | Three years
|
| Trade date: | April 25
|
| Settlement date: | April 28
|
| Ratings: | Moody's: Caa2
|
| S&P: CCC+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 8¾% area
|
| Marketing: | Roadshow
|
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