By Paul A. Harris
St. Louis, Jan. 17 - Atlas Energy Operating Co. and Atlas Energy Finance priced a downsized $250 million issue of senior notes due Feb. 1, 2018 (B3/B) at par to yield 10¾% on Wednesday, according to a market source.
Price talk was 10% to 10¼%, at a discount.
JP Morgan and Wachovia Securities were joint bookrunners for the Rule 144A with registration rights/Regulation S issue, which was downsized from $400 million.
Proceeds will be used to repay outstanding debt under the company's senior secured credit facility.
Atlas Energy is a Moon Township, Pa., company focused on the development and production of natural gas and, to a lesser extent, oil, principally in the Appalachian Basin.
| Issuer: | Atlas Energy Operating Co. and Atlas Energy Finance
|
| Amount: | $250 million (decreased from $400 million)
|
| Maturity: | Feb. 1, 2018
|
| Security description: | Senior notes
|
| Bookrunner: | JPMorgan, Wachovia Securities
|
| Co-managers: | Banc of America Securities LLC, BNP Paribas, RBC Capital Markets, Merrill Lynch & Co., Friedman Billings Ramsey
|
| Coupon: | 10¾%
|
| Price: | Par
|
| Yield: | 10¾%
|
| Spread: | 713 bps
|
| Call protection: | Five years
|
| Trade date: | Jan. 17
|
| Settlement date: | Jan. 23
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A with registration rights/Regulation S
|
| Price talk: | 10% to 10¼% at a discount
|
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