New Issue: Resolute Energy prices $125 million add-on to 2020 notes

By Paul Deckelman

New York, May 9 – Resolute Energy Corp. priced a $125 million add-on to its existing 8½% senior notes due May 1, 2020, high-yield syndicate sources said Tuesday.

The notes priced at 101.625, at the midpoint of pre-deal price talk of 101.5 to 102.75. They priced to yield 7.874%.

The sources said the Rule 144A and Regulation S deal, being sold with registration rights, priced later in the session, brought to market via bookrunners BMO Capital Markets Corp. and Goldman Sachs & Co.

The notes will have the same terms as the $400 million of already outstanding 8½% paper that the company originally sold. The company had priced $250 million in April of 2012 at par on April 20 and did a $150 million add-on tranche on Dec. 5, 2012 that priced at 101.25 to yield 8.2305%.

The outstanding notes became callable at 102.125 on May 1, and the notes will become callable at par on or after May 1, 2018.

There is a change-of-control put provision allowing holders to put the bonds back to the company at 101 upon such an event.

Resolute Energy, a Denver-based independent oil and natural gas exploration and production company, plans to use the new-deal proceeds and borrowings under its senior credit facility to finance the previously announced acquisition of certain producing and undeveloped oil and gas properties in the Delaware Basin in Reeves County, Texas.

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