Rice Energy upsizes to $900 million, talks eight-year senior notes to yield 6¼%-6½%

By Paul A. Harris

Portland, Ore., April 15 - Rice Energy Inc. upsized its offering of eight-year senior notes (B3/CCC+) to $900 million from $750 million and talked the notes to yield 6¼% to 6½% on Tuesday, according to a market source.

Books close at 1 p.m. ET on Wednesday, and the deal is set to price thereafter.

Barclays is the lead left bookrunner for the Rule 144A and Regulation S with registration rights offering. Wells Fargo Securities LLC, Goldman Sachs & Co., Citigroup Global Markets Inc. and RBC Capital Markets are the joint bookrunners.

BMO Capital Markets Corp. is the senior co-manager. Comerica Securities and Fifth Third Securities Inc. are the co-managers.

The notes are callable after three years at par plus 75% of the coupon.

The notes rank pari passu in right of payment to all existing and future senior debt, are senior to any subordinated debt and feature customary high-yield covenants.

The Canonsburg, Pa.-based oil and gas exploration and production company plans to use the proceeds to repay its second-lien term loan and for general corporate purposes, including capital expenditures.

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