By Paul A. Harris
Portland, Ore., Sept. 11 – American Energy – Woodford, LLC priced an upsized $350 million issue of 9% eight-year senior notes (Caa1/CCC/) at 95.901 to yield 9¾% on Thursday, according to a syndicate source.
The deal was upsized from $325 million.
The yield printed 62.5 basis points beyond the wide end of yield talk; the deal was talked to price at a small discount and to yield in the 9% area.
Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC were the joint bookrunners.
The Oklahoma City-based energy company plans to use the proceeds to repay its revolver, to fund future acquisitions and capital expenditures and to return capital to the sponsor.
| Issuers: | American Energy - Woodford, LLC and AEW Finance Corp.
|
| Face amount: | $350 million, increased from $325 million
|
| Proceeds: | $336 million
|
| Maturity: | Sept. 15, 2022
|
| Securities: | Senior notes
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC
|
| Coupon: | 9%
|
| Price: | 95.901
|
| Yield: | 9¾%
|
| Spread: | 741 bps
|
| First call: | Sept. 15, 2017 at 106.75
|
| Equity clawback: | 35% at 109 until Sept. 15, 2017
|
| Trade date: | Sept. 11
|
| Settlement date: | Sept. 16
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | At a small discount to yield in the 9% area
|
| Marketing: | Roadshow
|
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