Published on 4/15/2008 in the Prospect News Investment Grade Daily.
New Issue: XTO Energy prices $2 billion notes in five-, 10-, 30-year tranches
By Andrea Heisinger
Omaha, April 15 - XTO Energy Inc. priced $2 billion of senior notes (Baa2/BBB) in three tranches Tuesday, an informed source said.
A $400 million tranche of 4.625% five-year notes priced at 99.888 to yield 4.651%, or Treasuries plus 197 basis points.
An $800 million tranche of 5.5% 10-year notes priced at 99.539 to yield 5.561%, or Treasuries plus 197 bps.
An $800 million tranche of 6.375% 30-year notes priced at 99.864 to yield 6.386%, or Treasuries plus 197 bps.
All of the tranches priced on the tight end of price talk in the Treasuries plus 200 bps area.
They have a make-whole redemption option of Treasuries plus 30 bps.
Bookrunners were Lehman Brothers Inc., Citigroup Global Markets Inc. and Merrill Lynch, Pierce, Fenner & Smith Inc.
Co-managers were Banc of America Securities LLC, Barclays Capital Inc., BNP Paribas Securities Corp., Credit Suisse Securities LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., Jefferies & Co. Inc., J.P. Morgan Securities Inc., Morgan Stanley & Co. Inc., Greenwich Capital Markets Inc., SunTrust Robinson Humphrey, Inc., UBS Securities LLC, Wachovia Capital Markets LLC, BBVA Securities Inc., BMO Capital Markets Corp., BNY Capital Markets Inc., Comerica Securities Inc., Fortis Securities LLC, Lazard Capital Markets LLC, Natixis Bleichroeder Inc., Piper Jaffray & Co., Wells Fargo Securities, LLC.
Proceeds will be used for pending property acquisitions, to pay down outstanding commercial paper borrowings and for general corporate purposes including future acquisitions.
The oil and gas company is based in Forth Worth, Texas.
| Issuer: | XTO Energy Inc.
|
| Issue: | Senior notes
|
| Amount: | $2 billion
|
| Bookrunners: | Lehman Brothers Inc., Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Inc.
|
| Co-managers: | Banc of America Securities LLC, Barclays Capital Inc., BNP Paribas Securities Corp., Credit Suisse Securities LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., Jefferies & Co. Inc., J.P. Morgan Securities Inc., Morgan Stanley & Co. Inc., Greenwich Capital Markets Inc., SunTrust Robinson Humphrey, Inc., UBS Securities LLC, Wachovia Capital Markets LLC, BBVA Securities Inc., BMO Capital Markets Corp., BNY Capital Markets Inc., Comerica Securities Inc., Fortis Securities LLC, Lazard Capital Markets LLC, Natixis Bleichroeder Inc., Piper Jaffray & Co., Wells Fargo Securities, LLC.
|
| Trade date: | April 15
|
| Settlement date: | April 18
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
|
|
| Five-year tranche
|
| Amount: | $400 million
|
| Maturity: | June 15, 2013
|
| Coupon: | 4.625%
|
| Price: | 99.888
|
| Yield: | 4.651%
|
| Spread: | Treasuries plus 197 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Price talk: | 200 bps area
|
|
|
| 10-year tranche
|
| Amount: | $800 million
|
| Maturity: | June 15, 2018
|
| Coupon: | 5.5%
|
| Price: | 99.539
|
| Yield: | 5.561%
|
| Spread: | Treasuries plus 197 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Price talk: | 200 bps area
|
|
|
| 30-year tranche
|
| Amount: | $800 million
|
| Maturity: | June 15, 2038
|
| Coupon: | 6.375%
|
| Price: | 99.864
|
| Yield: | 6.386%
|
| Spread: | Treasuries plus 197 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Price talk: | 200 bps area
|
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