Published on 7/14/2014 in the Prospect News High Yield Daily.
New Issue: Rex Energy sells upsized $325 million 6¼% eight-year notes at par
By Paul A. Harris
Portland, Ore., July 14 – Rex Energy Corp. priced an upsized $325 million issue of eight-year senior notes (B3/B-/) at par to yield 6¼% on Monday, according to a syndicate source.
The quick-to-market deal was upsized from $250 million.
The yield printed at the tight end of the 6¼% to 6½% yield talk.
RBC Capital Markets LLC was the left bookrunner. KeyBanc Capital Markets Inc., SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC were the joint bookrunners.
The State College, Pa.-based exploration and production company, which is focused on the Appalachian and Illinois Basins, plans to use the proceeds to repay revolver debt and for general corporate purposes.
| Issuer: | Rex Energy Corp.
|
| Amount: | $325 million, increased from $250 million
|
| Maturity: | Aug. 1, 2022
|
| Securities: | Senior notes
|
| Left bookrunner: | RBC Capital Markets LLC
|
| Joint bookrunners: | KeyBanc Capital Markets Inc., SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC
|
| Senior co-managers: | BMO Capital Markets Corp., MUFG, Capital One Securities Inc., U.S. Bancorp Investments Inc.
|
| Co-manager: | Huntington Investment Co.
|
| Coupon: | 6¼%
|
| Price: | Par
|
| Yield: | 6¼%
|
| Spread: | 391 bps
|
| First call: | Aug. 1, 2017 at 104.688
|
| Trade date: | July 14
|
| Settlement date: | July 17
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 6¼% to 6½%
|
| Marketing: | Quick to market
|
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