By Paul A. Harris
St. Louis, July 26 - Parallel Petroleum Corp. priced a $150 million issue of seven-year senior notes (Caa1/B-) at par to yield 10¼% on Thursday, according to an informed source.
The yield was printed at the wide end of the 10% to 10¼% price talk.
Jefferies & Co. and Merrill Lynch & Co. were joint bookrunners for the Rule 144A and Regulation S with registration rights notes. BNP Paribas was the co-manager.
Proceeds will be used to reduce bank debt.
Midland, Texas-based Parallel Petroleum is an independent energy company engaged in the acquisition, exploration, development and production of oil and gas using three-dimensional seismic technology and advanced drilling, completion and recovery techniques.
| Issuer: | Parallel Petroleum Corp.
|
| Amount: | $150 million
|
| Maturity: | Aug. 1, 2014
|
| Security description: | Senior notes
|
| Bookrunners: | Jefferies & Co., Merrill Lynch & Co.
|
| Co-manager: | BNP Paribas
|
| Coupon: | 10¼%
|
| Price: | Par
|
| Yield: | 10¼%
|
| Spread: | 553 bps
|
| Call features: | Make-whole at Treasuries plus 50 bps until Aug. 1, 2011, then at 105.125, 102.563, par on or after Aug. 1, 2013
|
| Equity clawback: | Until Aug. 1, 2010 for 35% at 110.25
|
| Change-of-control put: | 101.0
|
| Trade date: | July 26
|
| Settlement date: | July 31
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A/Regulation S with registration rights
|
| Price talk: | 10% to 10¼%
|
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