Published on 11/7/2011 in the Prospect News High Yield Daily.
New Issue: WPX Energy prices $1.5 billion of five-, 10-year senior notes
By Paul A. Harris
Portland, Ore., Nov. 7 - WPX Energy, Inc. priced $1.5 billion of senior notes (Ba1) in two tranches on Monday, according to an informed source.
The deal included a $400 million tranche of 5¼% five-year notes, which priced at par to yield 5.247%. Price talk was in the 5¼% area.
WPX also priced $1.1 billion of 6% 10-year notes at par to yield 5.997%. Price talk was in the 6% area.
Citigroup Global Markets Inc., Barclays Capital Inc. and J.P. Morgan Securities LLC were the active bookrunners.
The 10-year notes feature a three-month par call.
About $1 billion of the proceeds will be distributed to Williams Cos. as part of restructuring transactions, with the remainder to be used for general corporate purposes.
The issuer is a Tulsa, Okla.-based natural gas and oil exploration and production company.
| Issuer: | WPX Energy, Inc.
|
| Amount: | $1.5 billion
|
| Securities: | Senior notes
|
| Active bookrunners: | Citigroup Global Markets Inc., Barclays Capital Inc., J.P. Morgan Securities LLC
|
| Co-managers: | Mizuho Securities, BOTM, DNB Nor, Sumitomo, US Bank, Compass, Bank of Oklahoma
|
| Trade date: | Nov. 7
|
| Settlement date: | Nov. 14
|
| Rating: | Moody's: Ba1
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Marketing: | Quick to market
|
|
|
| Five-year notes
|
| Amount: | $400 million
|
| Maturity: | Jan. 15, 2017
|
| Coupon: | 5¼%
|
| Price: | Par
|
| Yield: | 5.247%
|
| Call protection: | Non-callable
|
| Make-whole: | Treasuries plus 50 bps
|
| Passive bookrunners: | Credit Agricole, BNP Paribas
|
| Price talk: | 5¼% area
|
|
|
| 10-year notes
|
| Amount: | $1.1 billion
|
| Maturity: | Jan. 15, 2022
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 5.997%
|
| Special call: | Three-month par call
|
| Make-whole: | Treasuries plus 50 bps
|
| Passive bookrunners: | RBS Securities Inc., Scotia Capital
|
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