Halcon Resources talks $500 million eight-year notes at 9% area yield

By Paul A. Harris

Portland, Ore., June 27 - Halcon Resources Corp. talked a $500 million offering of eight-year senior notes (B3/CCC+) with a yield in the 9% area, a syndicate source said on Wednesday.

The order books are set to close on Thursday afternoon.

Barclays Capital Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BMO Capital Markets Corp. and RBC Capital Markets are the joint bookrunners.

Capital One Southcoast Inc., SunTrust Robinson Humphrey and Global Hunter Securities are the co-managers.

The Rule 144A and Regulation S with registration rights notes become callable in three years at par plus 75% of the coupon.

The notes will settle 10 business days following the trade date.

The Houston-based oil and gas acquisition, production, exploration and development company plans to use the proceeds to help fund its merger with GeoResources Inc. in a transaction valued at about $1 billion.

Proceeds will also be used to acquire other potential properties and for general corporate purposes.

Pending the completion of the merger, the proceeds will be used to fund an escrow account.

Under the merger agreement, GeoResources stockholders will receive $20 in cash and 1.932 shares of Halcon Resources common stock per share.

Closing is expected in the third quarter, subject to the approval of the stockholders of both companies, as well as other customary approvals.

In connection with the merger, Halcon Resources plans on putting in place a new revolver with an estimated size of $475 million.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.