Published on 1/7/2020 in the Prospect News High Yield Daily.
New Issue: WPX Energy prices restructured $900 million 10-year notes at par to yield 4½%
By Paul A. Harris
Portland, Ore., Jan. 7 – WPX Energy, Inc. priced a restructured $900 million issue of 10-year senior notes (B1/BB-/BB) at par to yield 4½% in a quick-to-market Tuesday trade, according to market sources.
The yield printed 12.5 basis points tighter than the 4 5/8% to 4¾% yield talk. Initial talk was in the high 4% area to 5%.
A proposed tranche of eight-year senior notes was withdrawn from the market, and the proceeds were shifted to the 10-year notes.
Joint bookrunner Barclays will bill and deliver. Other bookrunners were Citigroup Global Markets Inc., BofA Securities Inc., J.P. Morgan Securities LLC, MUFG, RBC Capital Markets Corp., TD Securities (USA) LLC and Wells Fargo Securities LLC.
Joint lead managers were Scotia Capital (USA) Inc., BBVA Securities Inc. and Credit Agricole CIB.
Proceeds from the public offering of notes will be used to partially fund the acquisition of Felix Energy.
The issuer is a Tulsa, Okla.-based independent energy producer with core acreage positions in the Permian and Williston basins.
| Issuer: | WPX Energy, Inc.
|
| Amount: | $900 million
|
| Maturity: | Jan. 15, 2030
|
| Securities: | Senior notes
|
| Bookrunners: | Barclays (bill and deliver), Citigroup Global Markets Inc., BofA Securities Inc., J.P. Morgan Securities LLC, MUFG, RBC Capital Markets Corp., TD Securities (USA) LLC and Wells Fargo Securities LLC
|
| Joint lead managers: | Scotia Capital (USA) Inc., BBVA Securities Inc. and Credit Agricole CIB
|
| Co-managers: | Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments Inc., ABN Amro Inc., BOK, Capital One Securities Inc., CIBC, ING Financial Markets LLC and PNC Capital Markets LLC
|
| Coupon: | 4½%
|
| Price: | Par
|
| Yield: | 4½%
|
| Spread: | 270 bps
|
| First call: | Jan. 15, 2025 at 102.25
|
| Trade date: | Jan. 7
|
| Settlement date: | Jan. 10
|
| Ratings: | Moody's: B1
|
| S&P: BB-
|
| Fitch: BB
|
| Distribution: | SEC registered
|
| Price talk: | 4 5/8% to 4¾%
|
| Marketing: | Quick to market
|
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