By Paul A. Harris
Portland, Ore., Jan. 18 – Extraction Oil & Gas, Inc. priced an upsized $750 million issue of eight-year senior notes (B3/B) at par to yield 5 5/8% in a quick-to-market Thursday sale, according to a syndicate source.
The issue size was increased from $600 million.
The yield came in the middle of the 5½% to 5¾% yield talk.
Credit Suisse Securities (USA) LLC, Barclays, Goldman Sachs & Co., SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC were joint bookrunners.
The Denver-based oil and gas producer plans to use the proceeds to refinance its 7 7/8% senior notes due 2021.
Extraction Oil & Gas is focused on Central Colorado’s Wattenberg Field.
Issuer: | Extraction Oil & Gas, Inc.
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Amount: | $750 million, increased from $600 million
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Maturity: | Feb. 1, 2026
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Securities: | Senior notes
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Bookrunners: | Credit Suisse Securities (USA) LLC, Barclays, Goldman Sachs & Co., SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC
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Coupon: | 5 5/8%
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Price: | Par
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Yield: | 5 5/8%
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Spread: | 304 bps
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First call: | Feb. 1, 2021 at 104.219
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Equity clawback: | 35% at 105.625 until Feb. 1, 2021
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Trade date: | Jan. 18
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Settlement date: | Jan. 25
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Ratings: | Moody's: B3
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| S&P: B
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Distribution: | Rule 144A and Regulation S for life
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Price talk: | 5½% to 5¾%
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Marketing: | Quick to market
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