Published on 4/12/2013 in the Prospect News High Yield Daily.
New Issue: Athlon sells upsized $500 million 7 3/8% eight-year notes at par
By Paul A. Harris
Portland, Ore., April 12 - Athlon Holdings LP and Athlon Finance Corp. priced an upsized $500 million issue of eight-year senior notes (Caa1/CCC+/) at par to yield 7 3/8% on Friday, according to a syndicate source.
The deal was upsized from $400 million.
The yield printed 12.5 basis points inside of the 7½% to 7¾% yield talk.
Joint physical bookrunner BofA Merrill Lynch will bill and deliver. Wells Fargo Securities LLC was also a joint physical bookrunner.
Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets, LLC and UBS Securities LLC were the joint bookrunners.
The Fort Worth, Texas-based independent exploration and production company plans to use the proceeds to repay a portion of its outstanding debt, to fund a return of capital to shareholders and for general partnership purposes.
| Issuer: | Athlon Holdings LP and Athlon Finance Corp.
|
| Amount: | $500 million, increased from $400 million
|
| Maturity: | April 15, 2021
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| Securities: | Senior notes
|
| Joint physical bookrunners: | BofA Merrill Lynch (bill and deliver), Wells Fargo Securities LLC
|
| Joint bookrunners: | Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets, LLC, UBS Securities LLC
|
| Co-managers: | Apollo Global Securities LLC, Barclays, Citigroup Global Markets Inc., Mitsubishi UFJ Securities (USA) Inc., Scotia Capital (USA) Inc.
|
| Coupon: | 7 3/8%
|
| Price: | Par
|
| Yield: | 7 3/8%
|
| Spread: | 609 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until April 15, 2016, then callable at 105.531, 103.688, 101.844, par on and after April 15, 2019
|
| Special call: | If a change of control occurs on or before July 15, 2014, the issuer may redeem all, but not less than all, of the notes at 110% plus accrued and unpaid interest
|
| Equity clawback: | 35% at 107.375 until April 15, 2016
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| Trade date: | April 12
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| Settlement date: | April 17
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| Ratings: | Moody's: Caa1
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| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 7½% to 7¾%
|
| Marketing: | Roadshow
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