Extraction Oil & Gas to sell $350 million seven-year notes on Tuesday

By Paul A. Harris

Portland, Ore., July 18 – Extraction Oil & Gas, Inc. plans to price a $350 million offering seven-year senior notes (B3/B/BB) on Tuesday trailing a mid-morning conference call with investors, according to market sources.

The deal is already a blowout, according to a trader, who added that there is a significant amount of reverse inquiry at play and that early guidance is 7¼%.

Barclays is the lead left bookrunner. Goldman Sachs & Co. and Jefferies LLC are the joint bookrunners.

The Rule 144A and Regulation S for life notes become callable after three years at par plus 50% of the coupon and feature a three-year 35% equity clawback at par plus the coupon and a 101% poison put.

The Denver-based oil and gas producer plans to use the proceeds to partially fund 2017 capital expenditures and for general corporate purposes.

Extraction Oil & Gas is focused on Central Colorado’s Wattenberg Field.

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