New Issue: Comstock upsizes to $300 million, prices 8 3/8% eight-year notes at 98.571 to yield 8 5/8%

By Paul A. Harris

St. Louis, Oct. 6 - Comstock Resources, Inc. priced an upsized $300 million issue of 8 3/8% eight-year notes (B2/B) at 98.571 to yield 8 5/8% on Tuesday, according to an informed source.

The yield printed at the tight end of the 8¾% yield talk. The issue price came in line with talk for approximately 1½ points of original issue discount.

Comstock increased the size from the original $200 million.

Bank of America Merrill Lynch, BMO Nesbitt Burns and J.P. Morgan Securities Inc. were joint bookrunners.

Proceeds will be used to repay bank debt and for general corporate purposes.

The issuer is a Frisco, Texas-based company engaged in the acquisition, development, production and exploration of oil and natural gas, with operations in Texas and Louisiana.

Issuer:	Comstock Resources, Inc.
Face amount:	$300 million (increased from $200 million)
Proceeds:	$295.713 million
Maturity:	Oct. 15, 2017
Security description:	Senior notes
Bookrunners:	Bank of America Merrill Lynch; BMO Nesbitt Burns, J.P. Morgan Securities Inc.
Co-managers:	BBVA Securities Inc., Capital One Southcoast, Comerica Investments, KeyBanc Securities, Mitsubishi, Morgan Keegan & Co. Inc., Natixis Bleichroeder Inc., Scotia Capital SunTrust Robinson Humphrey Inc., US Bancorp
Coupon:	8 3/8%
Price:	98.571
Yield:	8 5/8%
Spread:	562 bps
Call features:	Callable on Oct. 15, 2013 at 104.188, 102.094, par on and after Oct. 15, 2015
Equity clawback:	35% at 108.375 until Oct. 15, 2012
Trade date:	Oct. 6
Settlement date:	Oct. 9
Ratings:	Moody's: B2
	Standard & Poor's: B
Distribution:	Off shelf
Price talk:	8¾% area with about 1.5 points OID

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