By Paul A. Harris
Portland, Ore., Dec. 16 - Halcon Resources Corp. priced a $400 million add-on to its 9¾% senior notes due July 15, 2020 (Caa1/CCC+/) at 102.75 to yield 8.999% on Monday, according to an informed source.
The reoffer price came in the middle of the 102.5 to 103 price talk.
Barclays was the left bookrunner. Wells Fargo Securities LLC was the joint bookrunner.
The Houston-based oil and gas acquisition, production, exploration and development company plans to use the proceeds to refinance debt and for general corporate purposes.
| Issuer: | Halcon Resources Corp.
|
| Face amount: | $400 million
|
| Proceeds: | $411 million
|
| Maturity: | July 15, 2020
|
| Security description: | Add-on to 9¾% senior notes due July 15, 2020
|
| Left bookrunner: | Barclays
|
| Joint bookrunner: | Wells Fargo Securities LLC
|
| Coupon: | 9¾%
|
| Price: | 102.75
|
| Yield to worst: | 8.999%
|
| First call: | Callable at 104.875 on July 15, 2016
|
| Equity clawback: | 35% at 109.75 until July 15, 2015
|
| Change-of-control put: | 101%
|
| Trade date: | Dec. 16
|
| Settlement date: | Dec. 19 with accrued interest
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 102.5 to 103
|
| Marketing: | Quick to market
|
| Original issue: | $750 million priced at 98.646 to yield 10% in June 2012
|
| Fungibility: | Upon registration the add-on notes will be fungible with the existing notes within 180 days
|
| Total issue size: | $1.15 billion
|
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