New Issue: Moss Creek Resources sells upsized $700 million eight-year notes at par to yield 7½%

By Paul A. Harris

Portland, Ore., Jan. 12 – Moss Creek Resources Holdings, Inc. priced an upsized $700 million issue of eight-year senior notes (B3/B+) at par to yield 7½% on Friday, according to a syndicate source.

The issue size was increased from $650 million.

The yield printed at the wide end of the 7¼% to 7½% yield talk.

There were also covenant changes.

BMO Capital Markets Corp. was the left bookrunner. Wells Fargo Securities LLC, Citigroup Global Markets Inc. and Capital One were the joint bookrunners.

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.

Issuer:	Moss Creek Resources Holdings, Inc.
Amount:	$700 million, increased from $650 million
Maturity:	Jan. 15, 2026
Securities:	Senior notes
Left bookrunner:	BMO Capital Markets Corp.
Joint bookrunners:	Wells Fargo Securities LLC, Citigroup Global Markets Inc., Capital One
Co-managers:	FTN Financial Securities Corp., Huntington Capital, BOK Financial, Ramirez & Co., West Texas, Iberia
Coupon:	7½%
Price:	Par
Yield:	7½%
Spread:	497 bps
First call:	Make-whole call at Treasuries plus 50 bps until Jan. 15, 2021, then callable at 105.625
Equity clawback:	35% at 107.5 until Jan. 15, 2021
Trade date:	Jan. 12
Settlement date:	Jan. 18
Ratings:	Moody's: B3
	S&P: B+
Distribution:	Rule 144A and Regulation S for life
Price talk:	7¼% to 7½%
Marketing:	Roadshow

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