Moss Creek talks $650 million eight-year notes to yield 7¼%-7½%; pricing Friday

By Paul A. Harris

Portland, Ore., Jan. 11 – Moss Creek Resources Holdings, Inc. talked its $650 million offering of eight-year senior notes (B3/B+) to yield 7¼% to 7½%, according to a syndicate source.

There were also covenant changes.

Books close at noon ET on Friday, and the deal is set to price thereafter.

BMO Capital Markets Corp. is the left bookrunner for the Rule 144A for life offering. Wells Fargo Securities LLC, Citigroup Global Markets Inc. and Capital One are the joint bookrunners.

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

The Dallas-based independent oil and gas exploitation, production and acquisition company plans to use the proceeds to pay off its term loan and repay a portion of its revolver, with any remaining proceeds to be used for general corporate purposes.

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