New Issue: Unit Corp. prices upsized $250 million 6 5/8% 10-year notes at par

By Paul A. Harris

Portland, Ore., May 11 - Unit Corp. priced an upsized $250 million issue of 10-year senior subordinated notes (B3/BB-/BB-) at par to yield 6 5/8% on Wednesday, according to an informed source.

The yield printed 12.5 basis points tighter than the 6¾% to 6 7/8% price talk.

Bank of America Merrill Lynch and BMO Capital Markets Corp. were the joint bookrunners for the issue, which was upsized from $200 million.

The Tulsa, Okla.-based oil and gas company plans to use the proceeds to repay bank debt and for general corporate purposes.

Issuer:	Unit Corp.
Amount:	$250 million, upsized from $200 million
Maturity:	May 15, 2021
Securities:	Senior subordinated notes
Bookrunners:	Bank of America Merrill Lynch, BMO Capital Markets Corp.
Co-managers:	Banco Bilbao Vizcaya Argentaria, SA, Credit Agricole CIB, BNP Paribas Securities, Comerica Securities, Inc., Bosc, Inc., BB&T Capital Markets
Coupon:	6 5/8%
Price:	Par
Yield:	6 5/8%
Spread:	342 bps
Call features:	Make-whole call at Treasuries plus 50 bps until May 15, 2016, then callable at 103.313, 102.208, 101.104, par on and after May 15, 2019
Equity clawback:	35% at 106.625 until May 15, 2014
Change-of-control put:	101%
Trade date:	May 11
Settlement date:	May 18
Ratings:	Moody's: B3
	Standard & Poor's: BB-
	Fitch: BB-
Distribution:	SEC registered
Price talk:	6¾% to 6 7/8%
Marketing:	Roadshow

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