New Issue: Rosetta sells upsized $500 million 5 7/8% 10-year notes at par

By Paul A. Harris

Portland, Ore., May 21 - Rosetta Resources Inc. priced an upsized $500 million issue of 10-year senior notes (B1/B+/) at par to yield 5 7/8% on Wednesday, according to a market source.

The deal was upsized from $400 million.

The yield printed in the middle of the 5¾% to 6% yield talk.

J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BMO Capital Markets Corp. and Mitsubishi UFJ Securities (USA) Inc. were the joint bookrunners.

The Houston-based oil and gas exploration and production company plans to use the proceeds to pay down its revolver and for general corporate purposes.

Issuer:	Rosetta Resources Inc.
Amount:	$500 million increased from $400 million
Maturity:	June 1, 2024
Securities:	Senior notes
Bookrunners:	J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BMO Capital Markets Corp., Mitsubishi UFJ Securities (USA) Inc.
Senior co-managers:	BofA Merrill Lynch, BBVA Securities Inc., Comerica Securities Inc., Scotia Capital (USA) Inc.
Coupon:	5 7/8%
Price:	Par
Yield:	5 7/8%
Spread:	334 bps
First call:	June 1, 2019 at 102.938
Equity clawback:	35% at 105.875 until June 1, 2017
Change-of-control put:	101%
Trade date:	May 21
Settlement date:	May 29
Ratings:	Moody's: B1
	Standard & Poor's: B+
Distribution:	SEC registered
Price talk:	5¾% to 6%
Marketing:	Quick to market

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