New Issue: Rosetta sells $200 million eight-year senior notes at par to yield 9½%

By Paul A. Harris

St. Louis, April 12 - Rosetta Resources Inc. priced a $200 million issue of eight-year senior notes (Caa1/B+/) at par to yield 9½% on Monday, according to an informed source.

The yield printed on top of the price talk.

J.P. Morgan Securities Inc. was the left bookrunner. BNP Paribas Securities Corp. and Wells Fargo Securities were the joint bookrunners.

Co-managers were Mitsubishi UFJ Securities, US Bancorp, BMO Capital Markets, Johnson Rice & Co. LLC and Canaccord Adams, Inc.

Proceeds will be used to fund a partial repayment of the company's second-lien term loan and its revolver.

The issuer is a Houston-based energy exploration and production company.

Issuer:	Rosetta Resources Inc.
Amount:	$200 million
Maturity:	April 15, 2018
Security description:	Senior notes
Left bookrunner:	J.P. Morgan Securities Inc.
Joint bookrunners:	BNP Paribas Securities Corp., Wells Fargo Securities
Co-managers:	Mitsubishi UFJ Securities, US Bancorp, BMO Capital Markets, Johnson Rice & Co. LLC, Canaccord Adams, Inc.
Coupon:	9½%
Price:	Par
Yield:	9½%
Spread:	598 bps
Call features:	Make-whole call at Treasuries plus 50 bps until April 15, 2014, callable at 104.75, 102.375, par on and after April 15, 2016
Equity clawback:	35% at 109.50 until April 15, 2013
Change-of-control put:	101%
Trade date:	April 12
Settlement date:	April 15
Ratings:	Moody's: Caa1
	Standard & Poor's: B+
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	9½% area

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