Published on 10/23/2012 in the Prospect News High Yield Daily.
New Issue: Halcon sells upsized $750 million 8 7/8% notes due 2021 to yield 9%
By Paul A. Harris
Portland, Ore., Oct. 23 - Halcon Resources Corp. priced an upsized $750 million issue of 8 7/8% senior notes due May 15, 2021 (B3/CCC+/) at 99.247 to yield 9% on Tuesday, according to a syndicate source.
The yield printed at the tight end of the 9% to 9¼% yield talk.
Wells Fargo Securities LLC was the left bookrunner for the quick-to-market deal, which was upsized from $700 million.
J.P. Morgan Securities LLC, Barclays and Goldman Sachs & Co. were the joint bookrunners.
The Houston-based oil and gas exploration and production company plans to use $700 million of the net proceeds to fund the cash portion of the consideration for the Williston Basin assets acquisition, and the remainder for general corporate purposes, including acquisitions and capital expenditures.
| Issuer: | Halcon Resources Corp.
|
| Face amount: | $750 million, increased from $700 million
|
| Proceeds: | $744.35 million
|
| Maturity: | May 15, 2021
|
| Securities: | Senior notes
|
| Left bookrunner: | Wells Fargo Securities LLC
|
| Joint bookrunners: | J.P. Morgan Securities LLC, Barclays, Goldman Sachs & Co.
|
| Co-managers: | BMO Capital Markets Corp., Capital One Southcoast Inc., Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Natixis Securities Americas LLC, RBC Capital Markets LLC, RBS Securities Inc., SunTrust Robinson Humphrey Inc., Comerica Securities Inc., Deutsche Bank Securities Inc., ING Financial Markets LLC, KeyBanc Capital Markets Inc., Scotia Capital (USA) Inc.
|
| Coupon: | 8 7/8%
|
| Price: | 99.247
|
| Yield: | 9%
|
| Spread: | 751 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Nov. 15, 2016, then callable at 104.438, 102.219, par on and after Nov. 15, 2018
|
| Equity clawback: | 35% at 108.875 until Nov. 15, 2015
|
| Change-of-control put: | 101%
|
| Trade date: | Oct. 23
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| Settlement date: | Nov. 6
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 9% to 9¼%
|
| Marketing: | Quick to market
|
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