CrownRock driving by with $400 million eight-year senior notes; initial talk low-to-mid 5% area

By Paul A. Harris

Portland, Ore., April 13 – CrownRock LP and CrownRock Finance Inc. plan to price a $400 million offering of eight-year senior notes (B2/BB-) in a Tuesday drive-by, according to market sources.

The Rule 144A and Regulation S deal, which was scheduled to kick off on a Tuesday conference call with investors, is in the market with initial guidance in the low-to-mid 5% area, a bond trader said.

Credit Suisse Securities (USA) LLC is the left lead bookrunner. J.P. Morgan Securities LLC, Citigroup Global Markets Inc., MUFG, TD Securities (USA) LLC and Wells Fargo Securities LLC are the joint bookrunners.

Capital One Securities Inc., Comerica Securities Inc., FHN Financial Securities Corp., Jefferies LLC and Truist Securities Inc. are the co-managers.

The notes become callable after three years at par plus 50% of the coupon. They feature a three-year 40% equity clawback and a 101% poison put.

The Midland, Tex.-based oil and gas company plans to use the proceeds to fund a distribution to holdings, which intends to use those proceeds to redeem a portion of the series A preferred equity.

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