New Issue: Rosetta prices $700 million eight-year notes at par to yield 5 5/8%

By Paul A. Harris

Portland, Ore., April 18 - Rosetta Resources Inc. priced a $700 million issue of eight-year senior notes (B2/B+/) at par to yield 5 5/8% on Thursday, according to a market source.

The yield printed at the tight end of price talk set in the 5¾% area.

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

The Houston-based independent producer and developer of oil and gas properties plans to use the proceeds, together with proceeds from the concurrent equity offering, to fund a portion of the acquisition of the Permian Basin assets from Comstock Resources.

Rosetta Resources also intends to use part of the proceeds to repay its revolver in its entirety and for general corporate purposes.

Issuer:	Rosetta Resources Inc.
Amount:	$700 million
Maturity:	May 1, 2021
Securities:	Senior notes
Bookrunners:	J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC
Co-managers:	Comerica Securities, Credit Suisse Securities (USA) LLC, Mitsubishi UFJ, U.S. Bancorp
Coupon:	5 5/8%
Price:	Par
Yield:	5 5/8%
Spread:	429 bps
Call features:	Make-whole call at Treasuries plus 50 bps until May 1, 2017, then callable at 102.813, 101.406, par on and after May 1, 2019
Equity clawback:	35% at 105.625 until May 1, 2016
Investor put:	101% upon change of control
Trade date:	April 18
Settlement date:	May 2
Ratings:	Moody's: B2
	Standard & Poor's: B+
Distribution:	SEC registered
Price talk:	5¾% area
Marketing:	Roadshow

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