By Paul A. Harris
Portland, Ore., Sept. 23 – IronGate Energy Services, LLC priced a $30 million add-on to its non-rated 11% senior secured notes due July 1, 2018 at 99.5 to yield 11.154% on Tuesday, according to an informed source.
The reoffer price came on top of price talk
Jefferies LLC was the placement agent for the quick-to-market deal.
The deal is in the market as a Regulation D private placement. The notes are to be automatically exchanged into Rule 144A and Regulation S notes upon closing.
The Houston-based company plans to use the proceeds to fund the acquisition of Sun Tubular Services, LLC.
IronGate is an independent provider of rental and tubular services to oil and gas exploration and production operators.
| Issuer: | IronGate Energy Services, LLC
|
| Amount: | $30 million
|
| Maturity: | July 1, 2018
|
| Security description: | Add-on to 11% senior secured notes due July 1, 2018
|
| Placement agent: | Jefferies LLC
|
| Coupon: | 11%
|
| Price: | 99.5
|
| Yield to maturity: | 11.154%
|
| First call: | July 1, 2016 at 105.5
|
| Equity clawback: | 35% at 111 until July 1, 2016
|
| Change-of-control put: | 101%
|
| Trade date: | Sept. 23
|
| Settlement date: | Sept. 30 with accrued interest
|
| Ratings: | Non-rated
|
| Distribution: | Regulation D private placement, to be automatically exchanged into Rule 144A and Regulation S notes upon closing
|
| Price talk: | 99.5
|
| Marketing: | Quick to market
|
| Original issue: | $180 million priced at 98.132 to yield 11½% in June 2013
|
| Fungibility: | Upon closing the add-on notes will be immediately fungible with the original notes
|
| Total issue size: | $210 million
|
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