New Issue: Cimarex Energy prices upsized $750 million 10-year notes at par to yield 5 7/8%

By Paul A. Harris

Portland, Ore., March 22 - Cimarex Energy Co. priced an upsized $750 million issue of 10-year senior notes (Ba1/BB+/) at par to yield 5 7/8% on Thursday, according to a syndicate source.

The yield printed on top of yield talk.

J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Wells Fargo Securities LLC were the joint bookrunners for the quick-to-market issue, which was upsized from $650 million.

The Denver-based oil and gas exploration and production company plans to use the proceeds to fund the tender offer for its 7 1/8% notes due 2017 and for general corporate purposes.

Issuer:	Cimarex Energy Co.
Amount:	$750 million, increased from $650 million
Maturity:	May 1, 2022
Securities:	Senior notes
Bookrunners:	J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Wells Fargo Securities LLC
Senior co-managers:	Mitsubishi UFJ Securities, US Bancorp
Co-managers:	BB&T Capital Markets, Capital One Southcoast, CIBC World Markets, Comerica Securities, KeyBanc Capital Markets, BOSC Inc., Howard Weil Inc., ING, Lloyds TSB Securities
Coupon:	5 7/8%
Price:	Par
Yield:	5 7/8%
Spread:	361 bps
Call features:	Make-whole call at Treasuries plus 50 bps until May 1, 2017, then callable at 102.938
Equity clawback:	35% at 105.875 until May 1, 2015
Change-of-control put:	101%
Trade date:	March 22
Settlement date:	April 5
Ratings:	Moody's: Ba1
	Standard & Poor's: BB+
Distribution:	SEC registered
Price talk:	5 7/8% area

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