New Issue: Vanguard Natural Resources sells $350 million 7 7/8% eight-year notes to yield 8%

By Paul A. Harris

Portland, Ore., March 30 - Vanguard Natural Resources, LLC and VNR Finance Corp. priced an upsized $350 million issue of 7 7/8% eight-year senior notes (Caa1/B-/) at 99.274 to yield 8% on Friday, according to a syndicate source.

The yield printed on top of the yield talk.

Citigroup Global Markets Inc. was the left bookrunner. Credit Agricole CIB, RBC Capital Markets, UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.

The Houston-based oil and gas production and development company plans to use the proceeds to repay its term loan and reduce revolver debt.

Issuers:	Vanguard Natural Resources, LLC and VNR Finance Corp.
Amount:	$350 million, increased from $300 million
Maturity:	April 1, 2020
Securities:	Senior notes
Bookrunners:	Citigroup Global Markets Inc. (left books), Credit Agricole CIB, RBC Capital Markets, UBS Securities Inc., Wells Fargo Securities LLC
Co-managers:	BMO Securities, Capital One, Comerica Securities, Scotia Capital, Lloyds TSB, Natixis Securities, US Bancorp
Coupon:	7 7/8%
Price:	99.274
Yield:	8%
Spread:	575 bps
Call features:	Make-whole call at Treasuries plus 50 bps until April 1, 2016, then callable at 103.938, 101.969, par on and after April 1, 2018
Equity clawback:	35% at 107.875 until April 1, 2015
Change-of-control put:	101%
Trade date:	March 30
Settlement date:	April 4
Ratings:	Moody's: Caa1
	Standard & Poor's: B-
Distribution:	SEC registered
Price talk:	8% area
Marketing:	Roadshow

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