New Issue: RKI sells $50 million more 8½% notes due 2021 at 100.5 to yield 8.39%

By Paul A. Harris

Portland, Ore., July 23 - RKI Exploration & Production, LLC and RKI Finance Corp. priced a $50 million add-on to their 8½% senior notes due Aug. 1, 2021 (B3/B-/) at 100.5 to yield 8.39% on Tuesday, according to a syndicate source.

The reoffer price came on top of price talk.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC and UBS Securities LLC were the joint bookrunners for the quick-to-market deal.

Proceeds will be used to pay down the company's revolving credit facility.

RKI is an Oklahoma City-based energy company.

Issuers:	RKI Exploration & Production, LLC and RKI Finance Corp.
Face amount:	$50 million
Proceeds:	$50.25 million
Maturity:	Aug. 1, 2021
Security description:	Add-on to 8½% senior notes due Aug. 1, 2021
Bookrunners:	Citigroup Global Markets Inc., J.P. Morgan Securities LLC, UBS Securities LLC
Co-managers:	BBVA Securities, Mitsubishi UFJ Securities
Coupon:	8½%
Price:	100.5
Yield to worst:	8.39%
Spread:	706 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Aug. 1, 2016, then callable at 106.375, 104.25, 102.125, declining to par on and after Aug. 1, 2019
Equity clawback:	35% at 108.5 until Aug. 1, 2016
Change-of-control put:	101%
Trade date:	July 23
Settlement date:	July 26
Ratings:	Moody's: B3
	Standard & Poor's: B-
Distribution:	Rule 144A for life
Price talk:	100.5
Marketing:	Quick to market
Original issue:	$350 million priced at par on July 15, 2013
Fungibility:	Add-on notes will be fungible with the existing notes
Total issue size:	$400 million

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