Published on 11/20/2020 in the Prospect News High Yield Daily.
New Issue: Double Eagle prices $650 million five-year notes at par to yield 7¾%
By Paul A. Harris
Portland, Ore., Nov. 20 – Double Eagle III Midco 1 LLC and Double Eagle Finance Corp. priced a $650 million issue of five-year senior notes (B3/B/BB-) at par to yield 7¾% on Friday, according to market sources.
The yield printed 12.5 basis points beyond the wide end of yield talk in the 7½% area, which was also the initial price talk, sources said.
Citigroup Global Markets Inc. was the lead active bookrunner. J.P. Morgan Securities LLC was a joint active bookrunner. Joint bookrunners were Goldman Sachs & Co. LLC, BBVA Securities Inc., BMO Capital Markets Corp., CIBC World Markets Corp., Mizuho Securities USA Inc., PNC Capital Markets LLC, KeyBanc Capital Markets Inc., RBC Capital Markets LLC, MUFG and U.S. Bancorp Investments Inc.
The Fort Worth-based independent energy company plans to use the proceeds to repay debt, including its credit facility and second-lien term facility, and for general corporate purposes.
| Issuers: | Double Eagle III Midco 1 LLC and Double Eagle Finance Corp.
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| Amount: | $650 million
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| Maturity: | Dec. 15, 2025
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| Securities: | Senior notes
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| Lead active bookrunner: | Citigroup Global Markets Inc.
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| Joint active bookrunner: | J.P. Morgan Securities LLC
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| Joint bookrunners: | Goldman Sachs & Co. LLC, BBVA Securities Inc., BMO Capital Markets Corp., CIBC World Markets Corp., Mizuho Securities USA Inc., PNC Capital Markets LLC, KeyBanc Capital Markets Inc., RBC Capital Markets LLC, MUFG and U.S. Bancorp Investments Inc.
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| Co-manager: | CIT Capital Securities LLC
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| Coupon: | 7¾%
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| Price: | Par
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| Yield: | 7¾%
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| Spread: | 737 bps
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| First call: | Dec. 15, 2022 at 103.875
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| Trade date: | Nov. 20
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| Settlement date: | Dec. 1
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| Ratings: | Moody's: B3
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| S&P: B
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| Fitch: BB-
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 7½% area
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| Marketing: | Roadshow
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