Halcon Resources to price $400 million tap of 8 7/8% notes due 2021 on Wednesday

By Paul A. Harris

Portland, Ore., Jan. 8 - Halcon Resources Corp. plans to host an investor call at 11:30 a.m. ET on Wednesday to discuss a proposed $400 million add-on to its 8 7/8% senior notes due May 15, 2021 (expected ratings B3/CCC+), according to a syndicate source.

The deal is set to price on Wednesday afternoon.

Joint global coordinator Wells Fargo Securities LLC is the left bookrunner. RBC Capital Markets is also a joint global coordinator.

J.P. Morgan Securities LLC, Barclays and Goldman Sachs & Co. are the joint bookrunners.

BMO Capital Markets Corp., Bank of America Merrill Lynch, Capital One Southcoast, Credit Agricole CIB, Deutsche Bank Securities Inc., ING, Natixis Securities, RBS Securities Inc., SunTrust Robinson Humphrey Inc., Credit Suisse Securities (USA) LLC, Comerica Securities, KeyBanc Capital Markets and Scotia Capital are the co-managers.

The Rule 144A and Regulation S with registration rights notes have a make-whole call at Treasuries plus 50 bps until Nov. 15, 2016 and then become callable at 104.438.

About $300 million of the proceeds will be used to repay all the outstanding debt under the company's revolver, and the remainder will be used for general corporate purposes, including capital expenditures.

The original $750 million issue priced at 99.247 to yield 9% on Oct. 23, 2012.

Upon issuance, the add-on notes will be immediately fungible with the existing notes.

The prospective issuer is a Houston-based oil and gas exploration and production company.

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