Resolute Energy selling $150 million tap of 8½% senior notes due 2020 on Wednesday

By Paul A. Harris

Portland, Ore., Dec. 5 - Resolute Energy Corp. is in the market with a $150 million add-on to its 8½% senior notes due May 1, 2020 (existing ratings B3/B-), according to a syndicate source.

The deal is expected to price Wednesday, according to a bond trader, who added that the offer is being discussed in the context of a 101 reoffer price.

Citigroup Global Markets Inc. is the left bookrunner. BMO Securities, Wells Fargo Securities LLC and Barclays are the joint bookrunners.

Capital One Southcoast, Johnson Rice, Raymond James and Ladenburg Thalmann are the co-managers.

The notes become callable on May 1, 2016 at 104.25.

The Denver-based independent oil and gas company plans to use the proceeds to fund the acquisition of Permian Basin assets and for general corporate purposes.

The original $250 million issue priced at par on April 20, 2012.

With respect to the add-on, the Rule 144A notes will be immediately fungible with existing notes, while the Regulation S notes will be fungible with existing notes following a 40-day seasoning period.

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