CNX Resources talks $500 million eight-year notes at 6½% area yield

By Paul A. Harris

Portland, Ore., March 15 – CNX Resources Corp. talked a $500 million offering of eight-year senior notes (confirmed B3/expected B-) to yield in the 6½% area on Thursday, according to market sources.

Official talk came at the wide end of initial guidance in the low to mid 6% area.

Books were scheduled to close at 3:30 p.m. ET on Thursday, and the deal was expected to price thereafter.

However, the deal was pushed off at least until Friday, according to traders, one of whom said that the company was unhappy with pricing.

Credit Suisse Securities (USA) LLC is the lead left bookrunner for the Rule 144A and Regulation S with registration rights offering. J.P. Morgan Securities LLC, PNC Capital Markets LLC, MUFG, Wells Fargo Securities LLC, Goldman Sachs & Co. and Citigroup Global Markets Inc. are the joint bookrunners.

BofA Merrill Lynch, TD Securities (USA) LLC, Capital One, Natixis, ING, BB&T Capital Markets, SunTrust Robinson Humphrey Inc., Huntington and CIBC World Markets Corp. are the senior co-managers.

Barclays, BMO Securities, First National Bank of Pennsylvania, KeyBanc Capital Markets LLC and Morgan Stanley & Co. LLC are the co-managers.

The notes become callable after three years at par plus 75% of the coupon and feature a three-year 35% equity clawback and a 101% poison put.

The Canonsburg, Pa.-based independent oil and natural gas company plans to use the proceeds to repay its outstanding 8% senior notes due 2023.

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