By Paul A. Harris
St. Louis, May 18 - Range Resources Corp. priced a downsized $150 million issue of 10-year senior subordinated notes (B2/B) at par to yield 7½% on Thursday, according to a market source.
The yield came beyond the wide end of the 7¼% area price talk.
JP Morgan ran the books for the offering of notes, which have been registered with the Securities and Exchange Commission. Credit Suisse was the joint lead manager. Banc of America Securities LLC, Harris Nesbitt, Wachovia Securities, Calyon Securities, Comerica Securities, Fortis Securities, Capital One Southcoast, KeyBanc Capital Markets, Scotia Capital and Natexis were co-managers.
The issue was downsized from $200 million.
Proceeds will be used to pay down the company's senior credit facility, which was $246.1 million as of March 31.
Range Resources is a Fort Worth, Texas-based independent oil and gas company operating in the Southwestern, Appalachian and Gulf Coast regions of the United States.
| Issuer: | Range Resources Corp.
|
| Amount: | $150 million (downsized from $200 million)
|
| Maturity: | May 15, 2016
|
| Security description: | Senior subordinated notes
|
| Bookrunner: | JP Morgan
|
| Joint lead manager: | Credit Suisse
|
| Coupon: | 7½%
|
| Price: | Par
|
| Yield: | 7½%
|
| Spread: | 243 bps
|
| Call features: | Callable on and after May 15, 2011 at 103.75, 102.50, 101.25, par on and after May 15, 2014
|
| Equity clawback: | Until May 15, 2009 for 35% at 107.50
|
| Trade date: | May 18
|
| Settlement date: | May 23
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B
|
| Distribution: | SEC registered
|
| Price talk: | 7¼% area
|
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