By Paul A. Harris
Portland, Ore., Sept. 16 – Pacific Rubiales Energy Corp. priced a $750 million issue of 5 5/8% senior notes due Jan. 19, 2025 (Ba2/BB+/BB+) at 99.045 to yield 5¾% on Monday, according to a market source.
Citigroup Global Markets Inc. and BofA Merrill Lynch were the joint bookrunners.
Proceeds will be used to pay down short-term debt, including working capital loans and credit facilities.
“We are very pleased with the success of this offering, which will replace short-term debt with longer-term debt,” Ronald Pantin, the company’s chief executive officer, commented in the press release.
“This is part of our corporate debt liability management strategy aimed at reducing interest rates and increasing the term to maturity of the company’s long-term debt.
“The order book for the offering was multiple times oversubscribed with broad participation from over 125 investors in the United States, Canada, Latin America, Europe and Asia, which demonstrates the continued confidence of international investors in Pacific Rubiales, its business strategy and future prospects.”
Pacific Rubiales, a Toronto-based producer of natural gas and crude oil, owns 100% of Meta Petroleum Corp., which operates the Rubiales, Piriri and Quifa heavy oil fields in the Llanos Basin, and 100% of Pacific Stratus Energy Colombia Corp., which operates the La Creciente natural gas field in the northwestern area of Colombia.
| Issuer: | Pacific Rubiales Energy Corp.
|
| Amount: | $750 million
|
| Maturity: | Jan. 19, 2025
|
| Securities: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., BofA Merrill Lynch
|
| Coupon: | 5 5/8%
|
| Price: | 99.045
|
| Yield: | 5¾%
|
| Spread: | 315.9 bps
|
| First call: | Jan. 19, 2020 at 102.813
|
| Trade date: | Sept. 15
|
| Settlement date: | Sept. 19
|
| Ratings: | Moody’s: Ba2
|
| Standard & Poor’s: BB+
|
| Fitch: BB+
|
| Distribution: | Rule 144A and Regulation S
|
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