By Paul A. Harris
Portland, Ore., April 26 – Moss Creek Resources Holdings, Inc. priced a $500 million issue of eight-year senior notes (B3/B+) at par to yield 10½% on Friday, according to market sources.
The yield came at the wide end of the 10¼% to 10½% yield talk and well wide of initial guidance in the 10% area, according to sources.
BofA Merrill Lynch was the left bookrunner. BMO Securities, Capital One Securities Inc., Citigroup Global Markets Inc. and Wells Fargo Securities LLC were the joint bookrunners.
Moss Creek Resources Holdings is a wholly owned subsidiary of Surge Energy US Holdings Co., which is the issuing entity for the notes.
The Houston-based independent oil and gas exploration, production and acquisition company plans to use the proceeds to repay debt under its revolving credit facility and for general corporate purposes.
| Issuer: | Surge Energy US Holdings Co.
|
| Amount: | $500 million
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| Tenor: | Eight years
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| Securities: | Senior notes
|
| Left bookrunner: | BofA Merrill Lynch
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| Joint bookrunners: | BMO Securities, Capital One Securities Inc., Citigroup Global Markets Inc. and Wells Fargo Securities LLC
|
| Coupon: | 10½%
|
| Price: | Par
|
| Yield: | 10½%
|
| Call protection: | Three years
|
| Trade date: | April 26
|
| Settlement date: | May 1
|
| Ratings: | Moody's: B3
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 10¼% to 10½%
|
| Marketing: | Roadshow
|
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