Published on 9/15/2017 in the Prospect News High Yield Daily.
New Issue: WildHorse Resource prices $150 million tap of 6 7/8% notes due 2025 at 98.26
By Paul A. Harris
Portland, Ore., Sept. 15 – WildHorse Resource Development Corp. priced a $150 million add-on to its 6 7/8% senior notes due Feb. 1, 2025 (Caa1/B) at 98.26 to yield 7.181% on Friday, according to market sources.
The reoffer price came in line with the 98.25 initial guidance.
Wells Fargo Securities LLC was the left bookrunner. BMO Securities, 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 outstanding amounts under its senior secured revolving credit facility.
| Issuer: | WildHorse Resource Development Corp.
|
| Face amount: | $150 million
|
| Proceeds: | $147.39 million
|
| Maturity: | Feb. 1, 2025
|
| Security description: | Add-on to 6 7/8% senior notes due Feb. 1, 2025
|
| Left bookrunner: | Wells Fargo Securities LLC
|
| Joint bookrunners: | BMO Securities, Barclays, BofA Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC
|
| Co-managers: | BBVA Securities Inc., BOK, Capital One, CIBC, Comerica, Fifth Third, ING, Ramirez, U.S. Bancorp Investments Inc.
|
| Coupon: | 6 7/8%
|
| Price: | 98.26
|
| Yield: | 7.181%
|
| Spread: | 511 bps
|
| First 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: | Sept. 15
|
| Settlement date: | Sept. 19
|
| Ratings: | Moody's: Caa1
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Initial guidance: | 98.25
|
| Marketing: | Quick to market
|
| Original issue: | $350 million priced at 99.244 to yield 7% on Jan. 27, 2017
|
| Fungibility: | Rule 144A add-on notes to become immediately fungible with original notes; Regulation S notes to become fungible with original notes following 40-day cooling period
|
| Total issue size: | $500 million
|
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