Published on 9/26/2018 in the Prospect News High Yield Daily.
New Issue: Ascent Resources sells $600 million 7% eight-year notes at 99.236 to yield 7 1/8%
By Paul A. Harris
Portland, Ore., Sept. 26 – Ascent Resources Utica Holdings, LLC priced a $600 million issue of 7% eight-year senior notes (B2/BB-) at 99.236 to yield 7 1/8% on Wednesday, according to market sources.
The yield printed in the middle of the 7% to 7¼% yield talk and slightly wide of initial price talk in the 7% area, a trader said.
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 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.
| Issuer: | Ascent Resources Utica Holdings, LLC and ARU Finance Corp.
|
| Amount: | $600 million
|
| Maturity: | Nov. 1, 2026
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| Securities: | Senior notes
|
| Left bookrunner: | Credit Suisse Securities (USA) LLC
|
| Joint bookrunners: | J.P. Morgan Securities LLC, Barclays, Goldman Sachs & Co. LLC, BMO Securities, Natixis
|
| Senior co-managers: | Macquarie, ABN Amro, Capital One, Fifth Third Securities Inc., MUFG
|
| Co-managers: | BB&T Capital Markets LLC, CIT, CIBC, Citizens, Huntington, KeyBanc, Mizuho, PNC, Regions, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC, Hancock
|
| Coupon: | 7%
|
| Price: | 99.236
|
| Yield: | 7 1/8%
|
| Spread: | 405 bps
|
| First call: | Callable after Nov. 1, 2021 at 103.5
|
| Equity clawback: | 40% at 107 until Nov. 1, 2021
|
| Trade date: | Sept. 26
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| Settlement date: | Oct. 11
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| Ratings: | Moody's: B2
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| S&P: BB-
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| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 7% to 7¼%
|
| Marketing: | Roadshow
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