Published on 10/6/2014 in the Prospect News High Yield Daily.
New Issue: Atlas Resource Partners sells upsized $75 million tap of 9¼% notes due 2021 at 100.5
By Paul A. Harris
Portland, Ore., Oct. 6 – Atlas Energy Holdings Operating Co., LLC and Atlas Resource Finance Corp. priced an upsized $75 million add-on to their 9¼% senior notes due Aug. 15, 2021 (Caa1/B-/) at 100.5 to yield 9.114% on Monday, according to a syndicate source.
The deal was upsized from $50 million.
The reoffer price came at the rich end of the 100.25 to 100.5 price talk.
Wells Fargo Securities LLC was the left bookrunner for the quick-to-market deal. J.P. Morgan Securities LLC and RBC Capital Markets LLC were the joint bookrunners.
The Philadelphia-based exploration & production master limited partnership plans to use the proceeds, including those resulting from the $25 million upsizing of the bond deal, to help fund the pending Eagle Ford acquisition. Prior to funding the acquisition the proceeds may be used for general corporate purposes.
| Issuers: | Atlas Energy Holdings Operating Co., LLC and Atlas Resource Finance Corp.
|
| Amount: | $75 million, increased from $50 million
|
| Maturity: | Aug. 15, 2021
|
| Security description: | Add-on to 9¼% senior notes due Aug. 15, 2021
|
| Left bookrunner: | Wells Fargo Securities LLC
|
| Joint bookrunners: | J.P. Morgan Securities LLC, RBC Capital Markets LLC
|
| Co-managers: | ABN Amro Securities (USA) LLC, BBVA Securities Inc., CIBC World Markets Corp., Comerica Securities Inc., ING Financial Markets LLC, Natixis Securities Americas LLC, SunTrust Robinson Humphrey Inc.
|
| Coupon: | 9¼%
|
| Price: | 100.5
|
| Yield to worst: | 9.114%
|
| Spread: | 744 bps
|
| First call: | Aug. 15, 2017 at 104.625
|
| Trade date: | Oct. 6
|
| Settlement date: | Oct. 14 with accrued interest
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 100.25 to 100.5
|
| Marketing: | Quick to market
|
| Original issue: | $250 million priced at 99.297 to yield 9 3/8% in July 2013
|
| Fungibility: | Upon registration the add-on notes will be fungible with the original notes
|
| Total issue size: | $325 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
