Halcon Resources whispers $700 million eight-year notes in 7% area; pricing Thursday

By Paul A. Harris

Portland, Ore., Feb. 9 – Halcon Resources Corp. plans to price a $700 million offering of eight-year senior notes (expected ratings Caa1/B-) on Thursday, according to a market source.

Early guidance has the Rule 144A and Regulation S deal shaping up with a yield in the 7% area.

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

The notes come with three years of call protection.

The Houston-based independent energy company plans to use the proceeds, together with additional borrowings under its senior secured revolving credit facility or cash on hand, to repurchase and/or redeem its $700 million of outstanding 8 5/8% second-lien notes due 2020.

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