Published on 1/9/2013 in the Prospect News High Yield Daily.
New Issue: Halcon sells upsized $600 million tap of 8 7/8% notes due 2021 at 105 to yield 7.787%
By Paul A. Harris
Portland, Ore., Jan. 9 - Halcon Resources Corp. priced an upsized $600 million add-on to its 8 7/8% senior notes due May 15, 2021 (B3/CCC+/) at 105 on Wednesday, according to a syndicate source.
The reoffer price came on top of price talk that was reduced when the deal was upsized from $400 million.
The yield to worst is 7.787%.
Wells Fargo Securities LLC and RBC Capital Markets LLC were the joint global coordinators. J.P. Morgan Securities LLC, Barclays and Goldman Sachs & Co. were joint bookruners.
Proceeds will be used to repay bank debt and for general corporate purposes, including capital expenditures.
The issuer is a Houston-based oil and gas exploration and production company.
| Issuer: | Halcon Resources Corp.
|
| Amount: | $600 million, increased from $400 million
|
| Maturity: | May 15, 2021
|
| Securities: | Senior notes
|
| Joint global coordinators: | Wells Fargo Securities LLC, RBC Capital Markets LLC
|
| Bookrunners: | J.P. Morgan Securities LLC, Barclays, Goldman Sachs & Co.
|
| Co-managers: | BMO Capital Markets Corp., Bank of America Merrill Lynch, Capital One Southcoast Inc., Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc., ING Financial Markets LLC, Natixis Securities Americas LLC, RBS Securities Inc., SunTrust Robinson Humphrey Inc., Credit Suisse Securities (USA) LLC, Comerica Securities Inc., KeyBanc Capital Markets Inc., Scotia Capital (USA) Inc.
|
| Coupon: | 8 7/8%
|
| Price: | 105
|
| Yield to worst: | 7.787%
|
| 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: | Jan. 9
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| Settlement date: | Jan. 14
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| Ratings: | Moody's: B3
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| Standard & Poor's: CCC+
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| Distribution: | Rule 144A and Regulation S with registration rights
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| Price talk: | 105, revised downward from 105.5 when the deal was upsized
|
| Marketing: | Quick to market
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| Original issue: | $750 million issue priced at 99.247 to yield 9% on Oct. 23, 2012
|
| Fungibility: | Add-on notes will be immediately fungible with the existing notes
|
| Total issue size: | $1.35 billion
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