Published on 10/24/2013 in the Prospect News High Yield Daily.
New Issue: Antero sells upsized $1 billion eight-year notes at par to yield 5 3/8%
By Paul A. Harris
Portland, Ore., Oct. 24 - Antero Resources Corp. priced a massively upsized $1 billion issue of eight-year senior notes (B1/BB-) at par to yield 5 3/8% on Thursday, according to a market source.
The deal was upsized from $500 million.
The yield printed in the middle of the 5¼% to 5½% yield talk. Initial guidance was in the 5½% area.
J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Barclays, Capital One and Credit Agricole CIB were the joint bookrunners.
The Denver-based oil and gas company plans to use $549.6 million of the proceeds to finance the redemption of its 9 3/8% senior notes due 2017. The remaining proceeds will be used to repay in full the company's $25 million 9% senior notes due 2013, as well as the outstanding borrowings under its credit facility, and to fund its drilling and development program.
| Issuer: | Antero Resources Corp.
|
| Amount: | $1 billion, increased from $500 million
|
| Maturity: | Nov. 1, 2021
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Barclays, Capital One, Credit Agricole CIB
|
| Senior co-managers: | BMO Securities, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Mitsubishi UFJ
|
| Co-managers: | Comerica Securities, TD Securities (USA) LLC, U.S. Bancorp Investments Inc., BB&T Capital Markets, Fifth Third Securities Inc., KeyBanc Capital Markets LLC
|
| Coupon: | 5 3/8%
|
| Price: | Par
|
| Yield: | 5 3/8%
|
| Spread: | 319 bps
|
| Call protection: | Three years
|
| Trade date: | Oct. 24
|
| Settlement date: | Nov. 5
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A
|
| Price talk: | 5¼% to 5½%
|
| Marketing: | Quick to market
|
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