Ascent Resources to sell $300 million eight-year notes on Tuesday; early talk high 8% to 9% area

By Paul A. Harris

Portland, Ore., Dec. 14 – Ascent Resources Utica Holdings LLC and ARU Finance Corp. plan to price a $300 million offering of senior notes due 2028 (existing ratings Caa1/B/B) on Tuesday, according to market sources.

The deal, which was scheduled to be marketed on a conference call with investors, comes with early yield guidance in the high 8% to 9% area, a trader said.

Wells Fargo Securities LLC is the left bookrunner. Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, MUFG, Truist Securities Inc. and Mizuho Securities USA Inc. are the joint bookrunners.

BMO Capital Markets Corp. and Fifth Third Securities Inc. are the senior co-managers. BOK Financial Securities Inc., CIBC World Markets Corp., CIT Capital Securities LLC, Citizens Capital Markets Inc., KeyBanc Capital Markets Inc., PNC Capital Markets LLC, Regions Securities LLC and U.S. Bancorp Investments Inc. are the co-managers.

The Rule 144A and Regulation S for life eight-year notes become callable after three years at par plus 50% of the coupon.

The Oklahoma City-based oil and gas company plans to use the proceeds to repay outstanding revolver borrowings.

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