Published on 6/3/2020 in the Prospect News High Yield Daily and Prospect News Investment Grade Daily.
New Issue: WPX Energy sells $500 million eight-year notes at par to yield 5 7/8%
By Paul A. Harris
Portland, Ore., June 3 – WPX Energy, Inc. priced a $500 million issue of eight-year senior notes (B1/BB-/BBB-) at par to yield 5 7/8% in a Wednesday drive-by, according to market sources.
Wells Fargo Securities LLC was the left bookrunner. Joint bookrunners were BofA Securities Inc., TD Securities (USA) LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, MUFG, RBC Capital Markets LLC and Scotia Capital (USA) Inc.
Joint lead managers were Barclays and Credit Suisse Securities (USA) LLC.
The deal, which was heard to have been playing to $3 billion of orders late Wednesday morning, priced 12.5 basis points through the 6% to 6¼% price talk. Initial was in the mid 6% area.
The Tulsa, Okla.-based independent energy producer plans to use the proceeds to fund tender offers for its bonds due 2022, 2023, 2024 and for general corporate purposes.
| Issuer: | WPX Energy, Inc.
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| Amount: | $500 million
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| Maturity: | June 15, 2028
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| Securities: | Senior notes
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| Left bookrunner: | Wells Fargo Securities LLC
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| Joint bookrunners: | BofA Securities Inc., TD Securities (USA) LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, MUFG, RBC Capital Markets LLC and Scotia Capital (USA) Inc.
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| Joint lead managers: | Barclays and Credit Suisse Securities (USA) LLC
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| Co-managers: | ABN Amro Inc., BOK Financial Securities Inc., Capital One Securities Inc., CIBC World Markets Corp., Compass, Credit Agricole CIB, Goldman Sachs & Co. LLC, ING Financial Markets LLC, PNC Capital Markets LLC, Truist and U.S. Bancorp Investments Inc.
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| Coupon: | 5 7/8%
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| Price: | Par
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| Yield: | 5 7/8%
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| Call protection: | Three years; at 102.938 from June 15, 2023, 101.469 from June 15, 2024 and thereafter at par
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| Equity clawback: | Up to 35% at 105.875 before June 15, 2023
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| Change-of-control put: | At 101 plus interest
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| Trade date: | June 3
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| Settlement date: | June 17
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| Ratings: | Moody's: B1
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| S&P: BB-
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| Fitch: BBB-
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| Distribution: | SEC registered
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| Price talk: | 6% to 6¼%
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| Marketing: | Drive-by
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