Ascent Resources talks $600 million eight-year notes at 7%-7¼%; pricing Wednesday

By Paul A. Harris

Portland, Ore., Sept. 26 – Ascent Resources Utica Holdings, LLC talked its $600 million offering of eight-year senior notes (B2) to yield 7% to 7¼%, according to market sources.

Official talk comes slightly wide of initial price talk in the 7% area, a trader said.

Books were scheduled to close at 11 a.m. ET on Wednesday, and the Rule 144A and Regulation S notes were set to price thereafter.

Credit Suisse Securities (USA) LLC is the left bookrunner. J.P. Morgan Securities LLC, Barclays, Goldman Sachs & Co. LLC, BMO Securities and Natixis are the joint bookrunners.

The notes become callable after three years at par plus 50% of the coupon and feature a three-year 40% equity clawback and a 101% poison put.

The Oklahoma City-based oil and gas company plans to use the proceeds to exercise the equity clawback for 35% of its existing 2022 notes, including the premium, and to pay down its credit facility.

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