By Paul A. Harris
Portland, Ore., Aug. 18 – Range Resources Corp. priced an upsized $300 million add-on to its 9¼% senior notes due Feb. 1, 2026 (B3/B+) at par to yield 9¼% in a Tuesday drive-by, according to market sources.
The issue size increased from $200 million.
The issue price came at the rich end of the 99 to par price talk.
Bookrunners were J.P. Morgan Securities LLC, BofA Securities Inc., Wells Fargo Securities LLC, BMO Capital Markets Corp., Barclays, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC.
The Fort Worth-based independent natural gas, natural gas liquids and oil company plans to use the proceeds, along with borrowings from its credit facility if necessary, to fund tender offers for up to $400 million of its 5¾% senior notes due 2021, 5¾% senior subordinated notes due 2021, 5 7/8% senior notes due 2022, 5% senior notes due 2022, 5% senior subordinated notes due 2022 and 5% senior notes due 2023, with remaining proceeds to repay bank debt.
| Issuer: | Range Resources Corp.
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| Amount: | $300 million, increased from $200 million
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| Maturity: | Feb. 1, 2026
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| Security description: | Add-on to 9¼% senior notes due Feb. 1, 2026
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| Bookrunners: | J.P. Morgan Securities LLC, BofA Securities Inc., Wells Fargo Securities LLC, BMO Capital Markets Corp., Barclays, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC
|
| Coupon: | 9¼%
|
| Price: | Par
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| Yield: | 9¼%
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| Spread: | 898 bps
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| Trade date: | Aug. 18
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| Settlement date: | Sept. 1
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| Ratings: | Moody's: B3
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| S&P: B+
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| Distribution: | Rule 144A and Regulation S with registration rights
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| Price talk: | 99 to par
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| Marketing: | Drive-by
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| Original issue: | $550 million priced in January 2020
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| Total issue size: | $850 million
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