Rex Energy talks $100 million tap of 8 7/8% notes due 2020 at 105 area; pricing expected Tuesday

By Aleesia Forni

Virginia Beach, Va., April 23 - Rex Energy Corp. has set talk for its planned $100 million add-on to its existing 8 7/8% senior notes due 2020 (B3/B-/) at the 105 area, according to a market source.

The company set an investor call for 11 a.m. ET.

Books close at 12:30 p.m. ET with pricing expected on Tuesday.

Proceeds from the Rule 144A and Regulation S with registration rights deal will be used to fund a portion of the company's 2013 capital expenditures and for other general corporate purposes.

RBC Capital Markets LLC is the left lead bookrunner, while KeyBanc Capital Markets LLC, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC are the senior co-managers.

BMO Capital Markets Corp. and Mitsubishi UFJ Securities are the co-managers.

Capone, UBS Securities LLC and Oppenheimer & Co. Inc. are also banks on the deal.

The original $250 million issue priced on Dec. 12, 2012 at 99.3 to yield 9%.

Rex is a State College, Pa.-based independent oil and gas company operating in the Appalachian Basin in Pennsylvania and Ohio and the Illinois Basin in Illinois and Indiana.

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