New Issue: Clayton Williams sells $50 million tap of 7¾% senior notes due 2019 to yield 7.919%

By Paul A. Harris

Portland, Ore., April 26 - Clayton Williams Energy, Inc. priced a $50 million add-on to its 7¾% senior notes due April 1, 2019 (Caa1/B/) at 99 on Tuesday.

The reoffer price renders a 7.919% yield to worst.

RBS Securities Inc. ran the books for the quick-to-market add-on.

The Midland, Texas-based independent energy company plans to use the proceeds to repay borrowings outstanding under its revolver.

Amounts repaid under the revolver may be reborrowed, and the company may use those proceeds to redeem its 7¾% senior notes due 2013 and/or for general corporate purposes.

Issuer:	Clayton Williams Energy, Inc.
Face amount:	$50 million
Proceeds:	$49.5 million
Maturity:	April 1, 2019
Security description:	Add-on to 7¾% senior notes
Bookrunner:	RBS Securities Inc.
Coupon:	7¾%
Price:	99
Yield:	7.919%
Spread:	492 bps
Call features:	Make-whole call at Treasuries plus 50 bps until April 1, 2015, then callable at 103.875, 101.938, par on and after April 1, 2017
Equity clawback:	35% at 107.75 until April 1, 2014
Change-of-control put:	101%
Trade date:	April 26
Ratings:	Moody's: Caa1
	Standard & Poor's: B
Distribution:	Rule 144A
Marketing:	Quick to market
Original issue:	$300 million priced at par on March 11, 2011
Total issue size:	$350 million

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