By Paul A. Harris
Portland, Ore., Dec. 2 – Alta Mesa Finance Services Corp., a wholly owned subsidiary of Alta Mesa Holdings, LP, priced an upsized $500 million issue of eight-year senior notes (Caa1/B-) at par to yield 7 7/8% on Friday, according to a syndicate source.
The issue size was increased from $450 million.
The yield printed at the tight end of yield talk in the 8% area.
Wells Fargo Securities LLC was the left bookrunner. Capital One Securities Inc., Natixis Securities Americas LLC, ING Financial Markets LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and TD Securities (USA) LLC were the joint bookrunners.
Proceeds, including those resulting from the $50 million upsizing of the deal, will be used to fund the purchase of the 9 5/8% notes due 2018 via tender and/or redemption, with any remaining proceeds to pay down a revolving credit facility.
The issuer is a Houston-based oil and natural gas acquisition, exploitation, exploration and production company.
| Issuers: | Alta Mesa Holdings, LP and Alta Mesa Finance Services Corp.
|
| Amount: | $500 million, increased from $450 million
|
| Maturity: | Dec. 15, 2024
|
| Securities: | Senior notes
|
| Left bookrunner: | Wells Fargo Securities LLC
|
| Joint bookrunners: | Capital One Securities Inc., Natixis Securities Americas LLC, ING Financial Markets LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, TD Securities (USA) LLC
|
| Co-manager: | BOK Financial Services Inc.
|
| Coupon: | 7 7/8%
|
| Price: | Par
|
| Yield: | 7 7/8%
|
| Spread: | 577 bps
|
| Call: | Make-whole call until Dec. 15, 2019, then callable at 105.906
|
| Equity clawback: | 35% at 107.875 until Dec. 15, 2019
|
| Trade date: | Dec. 2
|
| Settlement date: | Dec. 8
|
| Ratings: | Moody's: Caa1
|
| S&P: B-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 8% area
|
| Marketing: | Roadshow
|
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