By Paul A. Harris
Portland, Ore., Feb. 9 – Halcon Resources Corp. priced an upsized $850 million issue of eight-year senior notes (Caa1/B-) at par to yield 6¾% on Thursday, according to a market source.
The issue size was increased from $700 million.
The yield printed on top of yield talk in the 6¾% area and inside of early guidance 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 were the joint bookrunners.
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 outstanding 8 5/8% second-lien notes due 2020.
| Issuer: | Halcon Resources Corp.
|
| Amount: | $850 million, increased from $700 million
|
| Maturity: | Feb. 15, 2025
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, Barclays, BMO Securities, Goldman Sachs & Co., RBC Capital Markets, Wells Fargo Securities LLC
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Spread: | 445 bps
|
| Call protection: | Three years
|
| Trade date: | Feb. 9
|
| Settlement date: | Feb. 16
|
| Ratings: | Moody's: Caa1
|
| S&P: B-
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 6¾% area
|
| Marketing: | Quick to market
|
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