By Paul A. Harris
Portland, Ore., July 26 - Aurora USA Oil & Gas, Inc. priced an upsized $165 million add-on to its 9 7/8% senior notes due Feb. 15, 2017 (Caa1/CCC+) at 101.5 on Thursday, according to a syndicate source.
The reoffer price, which came on top of price talk, rendered a 9.364% yield to worst.
The deal was upsized from $100 million.
Credit Suisse Securities (USA) LLC and UBS Securities LLC were the joint bookrunners for the quick-to-market add-on.
Proceeds will be used to fund capital expenditures for development of the company's holdings in the Eagle Ford shale trend (together with other sources of liquidity) and for other general corporate purposes, including financing potential future acquisitions of oil and natural gas interests in its core areas.
The issuer is a Perth, Western Australia-based energy company.
The original $200 million issue priced at 98.552 to yield 10¼% on Feb. 1, 2012.
The new notes will be immediately fungible with existing notes.
| Issuer: | Aurora USA Oil & Gas, Inc.
|
| Face amount: | $165 million, increased from $100 million
|
| Proceeds: | $167,475,000
|
| Maturity: | Feb. 15, 2017
|
| Security description: | Add-on to 9 7/8% senior notes due Feb. 15, 2017
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, UBS Securities LLC
|
| Co-manager: | GMP Securities LP
|
| Coupon: | 9 7/8%
|
| Price: | 101.5
|
| Yield to worst: | 9.364%
|
| Spread: | 901 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: | July 26
|
| Settlement date: | July 31 with accrued interest
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A for life
|
| Price talk: | 105 area
|
| Marketing: | Quick to market
|
| Original issue: | $200 million issue priced at 98.552 to yield 10¼% on Feb. 1, 2012
|
| Fungibility: | New notes immediately fungible
|
| Total issue size: | $365 million
|
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