Published on 10/17/2012 in the Prospect News High Yield Daily.
New Issue: W&T Offshore prices upsized $300 million tap of 8½% senior notes due 2019 at 106
By Paul A. Harris
Portland, Ore., Oct. 17 - W&T Offshore, Inc. priced an upsized $300 million add-on to its 8½% senior notes due June 15, 2019 (B3/B/) at 106 on Wednesday, according to a syndicate source.
The reoffer price, which came on top of the price talk, rendered a 6.963% yield to worst.
Morgan Stanley & Co. LLC, TD Securities (USA) LLC and Wells Fargo Securities LLC were the joint bookrunners for the quick-to-market add-on, which was upsized from $250 million.
The Houston-based oil and gas company plans to use the proceeds to repay outstanding debt recently incurred under its revolving credit facility and to fund a portion of the acquisition of assets in the Gulf of Mexico from Newfield Exploration Co.
| Issuer: | W&T Offshore, Inc.
|
| Face amount: | $300 million, increased from $250 million
|
| Proceeds: | $318 million
|
| Maturity: | June 15, 2019
|
| Securities: | Senior notes
|
| Bookrunners: | Morgan Stanley & Co. LLC, TD Securities (USA) LLC, Wells Fargo Securities, LLC
|
| Senior co-managers: | Global Hunter Securities, LLC, Lloyds Securities Inc., Natixis Securities Americas LLC, Scotia Capital (USA) Inc.
|
| Co-managers: | ABN Amro Securities (USA) LLC, Capital One Southcoast Inc., Citigroup Global Markets Inc., Goldman Sachs & Co., Iberia Capital Partners LLC, ING Financial Markets LLC, SMBC Nikko Capital Markets Ltd.
|
| Coupon: | 8½%
|
| Price: | 106
|
| Yield to worst: | 6.963%
|
| Spread: | 629 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until June 15, 2015, then callable at 104.25, 102.125, par on and after June 15, 2017
|
| Equity clawback: | For 35% at 108.5 until June 15, 2014
|
| Change-of-control put: | 101%
|
| Trade date: | Oct. 17
|
| Settlement date: | Oct. 24 with accrued interest
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A with registration rights and Regulation S
|
| Price talk: | 106
|
| Marketing: | Quick to market
|
| Original issue: | $600 million priced at par on June 3, 2012
|
| Fungibility: | Add-on notes will be fungible with the existing notes upon registration
|
| Total issue size: | $900 million
|
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