Published on 1/27/2017 in the Prospect News High Yield Daily.
New Issue: WildHorse prices upsized $350 million 6 7/8% eight-year notes at 99.244 to yield 7%
By Paul A. Harris
Portland, Ore., Jan. 27 – WildHorse Resource Development Corp. priced an upsized $350 million issue of 6 7/8% eight-year senior notes (Caa1/B) at 99.244 to yield 7% on Friday, according to a syndicate source.
The issue size was increased from $300 million.
The yield printed at the wide end of the 6¾% to 7% yield talk.
Wells Fargo Securities LLC was the left bookrunner. BMO, Barclays, BofA Merrill Lynch, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were the joint bookrunners.
The Houston-based independent oil and natural gas company plans to use the proceeds to repay the outstanding balance under its senior secured revolving credit facility and for general corporate purposes, including 2017 capital expenditures.
| Issuer: | WildHorse Resource Development Corp.
|
| Amount: | $350 million, increased from $300 million
|
| Maturity: | Feb. 1, 2025
|
| Securities: | Senior notes
|
| Left bookrunner: | Wells Fargo Securities LLC
|
| Joint bookrunners: | BMO Capital Markets Corp., Barclays, BofA Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC
|
| Co-managers: | BOK Financial Securities Inc., Capital One Securities Inc., Comerica Securities Inc., ING Financial Markets LLC, Raymond James & Associates Inc.
|
| Coupon: | 6 7/8%
|
| Price: | 99.244
|
| Yield: | 7%
|
| Spread: | 458 bps
|
| Call: | Make-whole call until Feb. 1, 2020, then callable at 105.156
|
| Equity clawback: | 35% at 106.875 until Feb. 1, 2020
|
| Trade date: | Jan. 27
|
| Settlement date: | Feb. 1
|
| Ratings: | Moody's: Caa1
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 6¾% to 7%
|
| Marketing: | Roadshow
|
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