Published on 11/12/2009 in the Prospect News High Yield Daily.
New Issue: Antero upsizes to $375 million, prices 9 3/8% eight-year notes at 99.299 to yield 9½%
By Paul A. Harris
St. Louis, Nov. 12 - Antero Resources Finance Corp. priced a twice-upsized $375 million issue of 9 3/8% eight-year senior notes (Caa1/B+/) at 99.299 to yield 9½%, or 631 basis points over Treasuries, on Thursday, according to an informed source.
The yield printed 12.5 bps inside of the 9¾% area price talk.
J.P. Morgan Securities Inc., Barclays Capital Inc. and Wells Fargo Securities were joint bookrunners for the deal, which was initially upsized to $350 million from $300 million and then further upsized by another $25 million.
Co-managers were BNP Paribas Securities Corp., Calyon Securities (USA) Inc., Comerica Securities, Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., KeyBanc Capital Markets Inc., Lloyds TSB Bank plc, Mitsubishi UFJ Securities (USA), Inc. and U.S. Bancorp Investments, Inc.
Proceeds will be used to repay bank debt.
Antero Resources is a Denver-based oil and gas company with properties primarily located in the Appalachian Basin, Arkoma Basin and Piceance Basin.
| Issuer: | Antero Resources Finance Corp.
|
| Face amount: | $375 million
|
| Proceeds: | $372,371,000
|
| Maturity: | Dec. 1, 2017
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities Inc., Barclays Capital Inc., Wells Fargo Securities, LLC
|
| Co-managers: | BNP Paribas Securities Corp., Calyon Securities (USA) Inc., Comerica Securities, Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., KeyBanc Capital Markets Inc., Lloyds TSB Bank plc, Mitsubishi UFJ Securities (USA), Inc., U.S. Bancorp Investments, Inc.
|
| Coupon: | 9 3/8%
|
| Price: | 99.299
|
| Yield: | 9½%
|
| Spread: | 631 bps
|
| Call features: | Make-whole until Dec. 1, 2013, then callable at 104.688, 102.344, par on and after Dec. 1, 2015
|
| Equity clawback: | 35% at 109.375 until Dec. 1, 2012
|
| Change-of-control put: | 101%
|
| Trade date: | Nov. 12
|
| Settlement date: | Nov. 17
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A/Regulation S with registration rights
|
| Price talk: | 9¾% area
|
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