By Paul A. Harris
Portland, Ore., July 18 – Extraction Oil & Gas, Inc. priced an upsized $400 million issue of seven-year senior notes (B3/B/BB) at par to yield 7 3/8% on Tuesday, according to a syndicate source.
The issue size was increased from $350 million.
The yield printed at the tight end of yield talk in the 7½% area.
Barclays was the lead left bookrunner. Goldman Sachs & Co. and Jefferies LLC were the joint bookrunners.
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.
Issuer: | Extraction Oil & Gas, Inc.
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Amount: | $400 million, increased from $350 million
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Maturity: | May 15, 2024
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Securities: | Senior notes
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Left lead bookrunner: | Barclays
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Joint bookrunners: | Goldman Sachs & Co., Jefferies LLC
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Coupon: | 7 3/8%
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Price: | Par
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Yield: | 7 3/8%
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Spread: | 533 bps
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Call: | Make-whole call at Treasuries plus 50 bps until May 15, 2020, then callable at 103.688
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Equity clawback: | 35% at 107.375 until May 15, 2020
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Trade date: | July 18
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Settlement date: | Aug. 1
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Ratings: | Moody's: B3
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| S&P: B
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| Fitch: BB
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Distribution: | Rule 144A and Regulation S for life
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Price talk: | 7½% area
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Marketing: | Quick to market
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