Published on 10/3/2012 in the Prospect News High Yield Daily.
New Issue: Alta Mesa sells upsized $150 million tap of 9 5/8% notes due 2018 at 99 to yield 9.85%
By Paul A. Harris
Portland, Ore., Oct. 3 - Alta Mesa Holdings, LP and Alta Mesa Finance Services Corp. priced an upsized $150 million add-on to its 9 5/8% senior notes due Oct. 15, 2018 (B3/B/) at 99 to yield 9.85% on Wednesday, according to a syndicate source.
The reoffer price came on top of the price talk.
Wells Fargo Securities LLC, Citigroup Global Markets Inc. and Mitsubishi UFJ Securities (USA) Inc. were the joint bookrunners for the quick-to-market add-on, which was upsized from $100 million.
The Houston-based onshore oil and gas exploration and production company plans to use the proceeds, including those resulting from the $50 million upsizing, to repay bank debt.
| Issuer: | Alta Mesa Holdings, LP and Alta Mesa Finance Services Corp.
|
| Face amount: | $150 million, increased from $100 million
|
| Proceeds: | $148.5 million
|
| Maturity: | Oct. 15, 2018
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| Security description: | Add-on to 9 5/8% senior notes due Oct. 15, 2018
|
| Bookrunners: | Wells Fargo Securities LLC, Citigroup Global Markets Inc., Mitsubishi UFJ Securities (USA) Inc.
|
| Co-managers: | TD Securities (USA) LLC, Capital One Southcoast Inc., ING Financial Markets LLC, Global Hunter Securities LLC
|
| Coupon: | 9 5/8%
|
| Price: | 99
|
| Yield: | 9.85%
|
| Call features: | Callable on Oct. 15, 2014 at 104.813, 102.406, par on and after Oct. 15, 2016
|
| Equity clawback: | 35% at 109.625 until Oct. 15, 2013
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| Trade date: | Oct. 3
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| Settlement date: | Oct. 15 with accrued interest
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| Ratings: | Moody's: B3
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| Standard & Poor's: B
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| Distribution: | Rule 144A and Regulation S with registration rights
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| Marketing: | Quick to market
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| Original issue: | $300 million priced at 99.307 to yield 9¾% in October
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| Fungibility: | Add-on notes to be fungible within 180 days of registration
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| Total issue size: | $450 million
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