Chicago, Aug. 18 – Antero Resources Corp. priced $250 million of 4.25% convertible notes due 2026 with an initial conversion premium of 20%, according to a press release on Tuesday evening.
Price talk was for a coupon of 3.75% to 4.25% and an initial conversion premium of 20% to 25%, according to a market source.
J.P. Morgan Securities LLC (lead left), Barclays and Credit Suisse Securities (USA) LLC are joint bookrunners for the Rule 144A offering, which carries a greenshoe of $50 million.
The notes are non-callable for 3.5 years and then subject to a 130% hurdle with a make-whole.
There is dividend and takeover protection.
Proceeds will be used repay debt under the company’s credit facility.
Antero Resources is a Denver-based gas and oil company.
| Issuer: | Antero Resources Corp.
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| Securities: | Convertible notes
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| Amount: | $250 million
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| Greenshoe: | $50 million
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| Maturity: | Sept. 1, 2026
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| Bookrunners: | J.P. Morgan Securities LLC (lead left), Barclays and Credit Suisse Securities (USA) LLC
|
| Coupon: | 4.25%
|
| Conversion premium: | 20%
|
| Conversion price: | $4.34
|
| Conversion rate: | 230.2026
|
| Call options: | On or after March 1, 2024, subject to 130% hurdle with a make-whole
|
| Put options: | Before May 1, 2026 only due to certain events; after May 1, 2026 any time until the second trading day before maturity, payable in cash, shares, or combination, at issuer’s option
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| Pricing date: | Aug. 18
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| Settlement date: | Aug. 21
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| Distribution: | Rule 144 A
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| Talk: | Coupon of 3.75% to 4.25% and an initial conversion premium of 20% to 25%
|
| Stock symbol: | NYSE: AR
|
| Stock price: | $3.62 at market close on Aug. 18
|
| Market capitalization: | $972.15 million
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