By Paul A. Harris
Portland, Ore., April 5 – Resolute Energy Corp. priced a $75 million add-on to its 8˝% senior notes due May 1, 2020 (Caa1/B-/B+) at 99.51 to yield 8.76% in a quick-to-market trade on Thursday, according to market sources.
The reoffer price came on top of final price talk and rich to initial talk of 98.5 to 99.
The deal traded at 99 5/8, a trader said late Thursday.
Goldman Sachs & Co. was the sole bookrunner.
The notes are presently callable 102.125. On May 1, 2018 at the call premium decreases to par.
The Denver-based independent oil and natural gas exploration and production company plans to use a portion of the proceeds to repay debt currently outstanding under its senior credit facility, with the remainder to be used for general corporate purposes including capital expenditures related to its previously announced 2018 plan.
| Issuer: | Resolute Energy Corp.
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| Amount: | $75 million
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| Maturity: | May 1, 2020
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| Security description: | Add-on to 8˝% senior notes due May 1, 2020
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| Bookrunner: | Goldman Sachs
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| Coupon: | 8˝%
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| Price: | 99.51
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| Yield to maturity: | 8.76%
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| Spread: | 641 bps
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| Call protection: | Currently callable at 102.125, will become callable at par on May 1, 2018
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| Trade date: | April 5
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| Settlement date: | April 9
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| Ratings: | Moody’s: Caa1
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| S&P: B-
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| Fitch: B+
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| Distribution: | Rule 144A and Regulation S with registration rights
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| Price talk: | 99.51
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| Marketing: | Quick to market
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| Original issue: | $400 million issue priced at par in April 2012
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| Previous add-ons: | $150 million priced at 101.25 in December 2012, $125 million priced at 101.625 on May, 9, 2017
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| Total issue size: | $750 million
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