New Issue: Aurora prices $200 million 9 7/8% five-year senior notes at 98.552 to yield 10¼%

By Paul A. Harris

Portland, Ore., Feb. 1 - Aurora USA Oil & Gas, Inc. priced a $200 million issue of 9 7/8% five-year senior notes (Caa1/CCC+/) at 98.552 to yield 10¼% on Wednesday, according to an informed source.

The yield printed on top of the price talk.

Credit Suisse Securities (USA) LLC and UBS Securities LLC were the joint bookrunners.

The Traverse, Mich.-based independent energy company plans to use the proceeds to fund the development of acreage, for general corporate purposes and to fund acquisitions.

Issuer:	Aurora USA Oil & Gas, Inc.
Face amount:	$200 million
Proceeds:	$197,104,000
Maturity:	Feb. 15, 2017
Securities:	Senior notes
Bookrunners:	Credit Suisse Securities (USA) LLC, UBS Securities LLC
Coupon:	9 7/8%
Price:	98.552
Yield:	10¼%
Spread:	953 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Feb. 15, 2015, then callable at 104.938, par on and after Feb. 15, 2016
Equity clawback:	35% at 109.875 until Feb. 15, 2015
Change-of-control put:	101%
Trade date:	Feb. 1
Settlement date:	Feb. 8
Ratings:	Moody's: Caa1
	Standard & Poor's: CCC+
Distribution:	Rule 144A and Regulation S for life
Price talk:	10¼% area
Marketing:	Roadshow

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