Aethon talks $750 million five-year senior notes to yield 8½%-8¾%; pricing Tuesday

By Paul A. Harris

Portland, Ore., Jan. 26 – Aethon United BR LP and Aethon United Finance Corp. talked their $750 million offering of five-year senior notes (B3/B/B) to yield 8½% to 8¾%, according to market sources.

Official talk comes tight to guidance in the 8¾% area.

The deal's timing accelerated. Books close at 3 p.m. ET on Tuesday, and the Rule 144A and Regulation S for life deal is set to price thereafter. Previously it had been expected to remain in the market into the Wednesday session.

Left lead bookrunner RBC Capital Markets LLC will bill and deliver. J.P. Morgan Securities LLC, Truist Securities Inc. and Citigroup Global Markets Inc. are joint active bookrunners. BofA Securities Inc., BBVA Securities Inc., CIBC World Markets Corp., Citizens Capital Markets Inc. and KeyBanc Capital Markets Inc. are joint bookrunners.

CIT Capital Securities LLC, EIG, Jefferies LLC and TD Securities (USA) LLC are co-managers.

The notes become callable after two years at par plus 50% of the coupon.

The Dallas-based private oil and gas company plans to use the proceeds to refinance its second-lien term loan, as well as to pay down its revolver and for general corporate purposes.

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