By Abigail W. Adams
Portland, Me., April 2 – Comstock Resources Inc. priced an upsized $400 million mirror add-on to its 6¾% senior notes due 2029 (B2/B/B+) in a Tuesday drive-by at 93 to yield 8.526%, according to a market source.
Pricing came on top of talk for a reoffer price of 93.
Early guidance was for a reoffer price in the 93 area.
The initial size of the offering was $375 million.
The add-on is non-fungible to the existing notes but will have practically identical terms.
They are non-callable until March 1, 2025.
BofA Securities Inc. (lead left) and Wells Fargo Securities LLC are lead bookrunners for the Rule 144A and Regulation S offering.
Capital One Securities Inc., Fifth Third Securities Inc., Mizuho Securities USA Inc., Regions Securities LLC and Truist Securities are also bookrunners.
The notes have a 101 poison put.
Proceeds will be used to repay a portion of debt under the company’s bank credit facility.
Comstock Resources is a Frisco, Tex.-based energy company.
| Issuer: | Comstock Resources Inc.
|
| Amount: | $400 million
|
| Issue: | Non-fungible mirror add-on to 6¾% senior notes due 2029
|
| Maturity: | March 1, 2029
|
| Bookrunners: | BofA Securities Inc. (lead left), Wells Fargo Securities LLC (lead), Capital One Securities Inc., Fifth Third Securities Inc., Mizuho Securities USA Inc., Regions Securities LLC and Truist Securities
|
| Coupon: | 6¾%
|
| Price: | 93
|
| Yield: | 8.526%
|
| Spread: | Treasuries plus 419 bps
|
| First call: | March 1, 2024
|
| Trade date: | April 2
|
| Settlement date: | April 9
|
| Ratings: | Moody's: B2
|
| S&P: B
|
| Fitch: B+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 93
|
| Marketing: | Drive-by
|
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