Published on 7/13/2009 in the Prospect News High Yield Daily.
New Issue: Atlas Energy upsizes to $200 million, prices 12 1/8% eight-year notes at 98.116 to yield 12½%
By Paul A. Harris
St. Louis, July 13 - Atlas Energy Operating Co., LLC and Atlas Energy Finance Corp. priced an upsized $200 million issue of 12 1/8% eight-year senior notes (expected ratings B3/B+) at 98.116 to yield 12½% on Monday, according to an informed source.
The yield came on top of the yield talk. The price came within price talk which set forth 2 points of original issue discount. Atlas increased the size from the planned $150 million amount.
JP Morgan, Wells Fargo Securities, Banc of America Securities LLC and RBC Capital Markets were joint bookrunners for the quick-to-market deal.
Proceeds will be used to repay the Moon Township, Pa.-based energy company's revolver.
| Issuers: | Atlas Energy Operating Co., LLC and Atlas Energy Finance Corp.
|
| Face amount: | $200 million (increased from $150 million)
|
| Proceeds: | $196.232 million
|
| Maturity: | Aug. 1, 2017
|
| Security description: | Senior notes
|
| Bookrunners: | JP Morgan, Wells Fargo Securities, Banc of America Securities LLC, RBC Capital Markets
|
| Co-managers: | BNP Paribas, BBVA Securities, BMO Capital Markets, Calyon Securities, Citigroup, RBS Securities Inc., Scotia Capital
|
| Coupon: | 12 1/8%
|
| Price: | 98.116
|
| Yield: | 12½%
|
| Spread: | 932 bps
|
| Call features: | Make-whole at Treasuries plus 50 bps until Aug. 1, 2013, then callable at 106.063, 103.031, par on and after Aug. 1, 2015
|
| Change of control: | 101 put
|
| Equity clawback: | 35% at 112.125 until Aug. 1, 2012
|
| Trade date: | July 13
|
| Settlement date: | July 16
|
| Ratings: | Moody's: B3 (expected)
|
| Standard & Poor's: B+
|
| Distribution: | SEC registered
|
| Price talk: | 12½% area with 2 points of original issue discount
|
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