New Issue: Rice Energy prices $400 million 7¼% eight-year notes at 99.233 to yield 7 3/8%

By Paul A. Harris

Portland, Ore., March 23 – Rice Energy Inc. priced a $400 million issue of 7¼% eight-year senior notes (B3/B-) at 99.233 to yield 7 3/8% on Monday, according to a syndicate source.

The yield printed at the tight end of yield talk in the 7½% area.

Wells Fargo Securities LLC was the left bookrunner. Barclays, Goldman Sachs & Co., RBC Capital Markets and Citigroup Global Markets Inc. were the joint bookrunners.

The Canonsburg, Pa., independent oil and gas company plans to use the proceeds for general corporate purposes, including capital expenditures.

Rice Energy is engaged in the acquisition, exploration and development of natural gas, oil and NGL properties in the Marcellus Shale in southwestern Pennsylvania and the Utica Shale in southeastern Ohio.

Issuer:	Rice Energy Inc.
Face amount:	$400 million
Proceeds:	$397 million
Maturity:	May 1, 2023
Securities:	Senior notes
Left bookrunner:	Wells Fargo Securities LLC
Joint bookrunners:	Barclays, Goldman Sachs & Co., RBC Capital Markets LLC, Citigroup Global Markets Inc.
Co-managers:	Comerica Securities Inc., BMO Capital Markets Corp., Capital One Securities Inc., SunTrust Robinson Humphrey Inc., Fifth Third Securities Inc.
Coupon:	7¼%
Price:	99.233
Yield:	7 3/8%
Spread:	561 bps
First call:	May 1, 2018 at 105.438
Trade date:	March 23
Settlement date:	March 26
Ratings:	Moody's: B3
	Standard & Poor's: B-
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	7½% area
Marketing:	Quick to market

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