By Paul A. Harris
Portland, Ore., Jan. 11 – Antero Resources Corp. priced an upsized $700 million issue of eight-year senior notes (B2/B+) at par to yield 7 5/8% in a Monday drive-by, according to market sources.
The issue size increased from $500 million.
The yield printed 12.5 basis points tighter than the 7¾% to 8% yield talk. Initial talk was 8% to 8¼%.
The deal was heard to be playing to $4 billion of orders, according to a bond trader,
Another traded spotted the new notes at par 5/8 bid, par 7/8 offered at the Monday close.
J.P. Morgan Securities LLC was at the left of a syndicate of bookrunners that also included Barclays, Citigroup Global Markets Inc., Credit Agricole CIB, RBC Capital Markets LLC, Truist Securities Inc. and Wells Fargo Securities LLC.
The Denver-based natural gas and natural gas liquids producer plans to use a portion of the proceeds to redeem all $310.5 million of its 5 1/8% senior notes due 2022 at par plus accrued interest, with the remaining proceeds to repay debt under its credit facility.
Antero Resources returns to the high-yield primary market after having priced a $500 million issue of 8 3/8% senior notes due July 2026 in December.
| Issuer: | Antero Resources Corp.
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| Amount: | $700 million, increased from $500 million
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| Tenor: | Eight years
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| Securities: | Senior notes
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| Bookrunners: | J.P. Morgan Securities LLC, Barclays, Citigroup Global Markets Inc., Credit Agricole CIB, RBC Capital Markets LLC, Truist Securities Inc. and Wells Fargo Securities LLC
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| Coupon: | 7 5/8%
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| Price: | Par
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| Yield: | 7 5/8%
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| Call protection: | Three years
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| Trade date: | Jan. 11
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| Settlement date: | Jan. 26
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| Existing ratings: | Moody's: B2
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| S&P: B+
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | 7¾% to 8%
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| Marketing: | Drive-by
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