New Issue: Rosetta Resources sells upsized $600 million 8.5-year notes at par to yield 5 7/8%

By Paul A. Harris

Portland, Ore., Nov. 7 - Rosetta Resources Inc. priced an upsized $600 million issue of 8.5-year senior notes (B2/B+/) at par to yield 5 7/8% on Thursday, according to a syndicate source.

The issue was upsized from $450 million.

The yield printed at the wide end of the 5¾% to 5 7/8% yield talk.

Wells Fargo Securities LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the joint bookrunners.

The Houston-based energy exploration and production company plans to use the proceeds to pay off its revolver in full and for general corporate purposes.

Rosetta Resources owns well-delineated positions in the Eagle Ford area in South Texas and in the Permian Basin.

Issuer:	Rosetta Resources Inc.
Amount:	$600 million, increased from $450 million
Maturity:	June, 1, 2022
Securities:	Senior notes
Bookrunners:	Wells Fargo Securities LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC
Senior co-managers:	BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Mitsubishi UFJ Securities (USA) Inc.
Co-managers:	BMO Capital Markets Corp., RBC Capital Markets, LLC
Coupon:	5 7/8%
Price:	Par
Yield:	5 7/8%
Spread:	350 bps
First call:	Dec. 1, 2017 at 102.938%
Trade date:	Nov. 7
Settlement date:	Nov. 15
Ratings:	Moody's: B2
	Standard & Poor's: B+
Distribution:	SEC registered
Price talk:	5¾% to 5 7/8%
Marketing:	Quick to market

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