Gastar talks $100 million five-year notes with 12¾% coupon at 99.50-99.75

By Paul A. Harris

St. Louis, Nov. 15 - Gastar Exploration USA, Inc. set price talk for its $100 million offering of five-year senior secured notes (Caa2/CCC) on Thursday, according to an informed source.

The notes are expected to have a 12¾% coupon, with an issue price in the range of 99.50 to 99.75.

The deal is expected to price midday Friday.

Jefferies & Co. is leading the Rule 144A transaction. Johnson Rice & Co. LLC and Pritchard Capital Partners, LLC are the co-managers.

The notes come with three years of call protection, a three-year 35% equity clawback and a change-of-control put at 101.

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

Houston-based Gastar is an independent oil and gas exploration, development and production company operating in Australia and the United States.

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