Published on 8/8/2013 in the Prospect News High Yield Daily.
New Issue: Halcon sells upsized $400 million 9¼% notes due February 2022 at par
By Aleesia Forni
Virginia Beach, Va., Aug. 8 - Halcon Resources Corp. was in the market on Thursday pricing an upsized $400 million offering of 9¼% senior notes (Caa1/CCC+) due Feb. 15, 2022 at par, according to an informed source.
Proceeds from the Rule 144A and Regulation S deal will be used to repay a portion of the company's outstanding borrowings under its senior secured revolving credit facility. The company is also selling stock, which will also be used to repay revolver borrowings.
The left bookrunner on the deal was BMO Capital Markets Corp., while Barclays, J.P. Morgan Securities LLC and Wells Fargo Securities LLC were joint bookrunners.
The issuer is a Houston-based oil and gas exploration and production company.
| Issuer: | Halcon Resources Corp.
|
| Amount: | $400 million, upsized from $300 million
|
| Description: | Senior notes
|
| Maturity: | Feb. 15, 2022
|
| Left bookrunner: | BMO Capital Markets Corp.
|
| Joint bookrunners: | Barclays, J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Co-managers: | RBC Capital Markets LLC, Goldman Sachs & Co., Credit Agricole Securities (USA) Inc., Capital One, SunTrust Robinson Humphrey Inc., Deutsche Bank Securities Inc., ING Financial Markets LLC, Natixis Securities, RBS Securities Inc., Credit Suisse Securities, Comerica, Keybanc, Scotia
|
| Coupon: | 9¼%
|
| Price: | Par
|
| Yield: | 9¼%
|
| Call features: | Make-whole call at Treasuries plus 50 bps prior to Aug. 15, 2017, then callable at 104.625, 102.313 and par on or after Aug. 15, 2019
|
| Equity clawback: | Up to 35% at 109.25 prior to Aug. 15, 2016
|
| Change-of-control put: | 101%
|
| Trade date: | Aug. 8
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A, Regulation S
|
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