Published on 6/6/2013 in the Prospect News High Yield Daily.
New Issue: Approach Resources prices $250 million eight-year notes at par to yield 7%
By Paul A. Harris
Portland, Ore., June 6 - Approach Resources Inc. priced a $250 million issue of eight-year senior notes (B3/B-/) at par to yield 7% on Thursday, according to a market source.
The yield printed at the wide end of the 6¾% to 7% yield talk.
J.P. Morgan Securities LLC, RBC Capital Markets LLC and KeyBanc Capital Markets Inc. were the joint bookrunners.
A proposed special one-year 110% change-of-control redemption provision was eliminated.
Proceeds will be used to refinance the company's revolving credit facility.
Approach Resources is a Fort Worth-based oil and gas exploration and production company.
| Issuer: | Approach Resources Inc.
|
| Amount: | $250 million
|
| Maturity: | June 15, 2021
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, RBC Capital Markets LLC, KeyBanc Capital Markets Inc.
|
| Co-managers: | Wells Fargo Securities LLC, BofA Merrill Lynch, Scotia Capital, Tudor Pickering Holt & Co. Securities Inc.
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Spread: | 532 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until June 15, 2016, then callable at 105.25, 103.5, 101.75, par on and after June 15, 2019
|
| Equity clawback: | 35% at 107 until June 15, 2016
|
| Change-of-control put: | 101%
|
| Trade date: | June 6
|
| Settlement date: | June 11
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | SEC registered
|
| Price talk: | 6¾% to 7%
|
| Marketing: | Roadshow
|
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