By Paul A. Harris
Portland, Ore., July 13 – Extraction Oil & Gas Holdings, LLC and Extraction Finance Corp. priced an upsized $550 million issue of five-year senior notes (Caa1/B-) at par to yield 7 7/8% on Wednesday, according to a syndicate source.
The issue size was increased from $500 million.
The yield printed at the tight end of yield talk in the 8% area. Official talk was tight to initial guidance in the low-to-mid 8% yield context.
Barclays was the lead left bookrunner. Goldman Sachs & Co., RBC Capital Markets and Wells Fargo Securities LLC were the joint bookrunners.
The Denver-based oil and gas producer plans to use the proceeds to repay and retire its second-lien term loan, to pay the associated prepayment premium and to repay debt under its existing revolver.
Extraction Oil & Gas is focused on Central Colorado’s Wattenberg Field.
| Issuers: | Extraction Oil & Gas Holdings, LLC and Extraction Finance Corp.
|
| Amount: | $550 million
|
| Maturity: | July 15, 2021
|
| Securities: | Senior notes
|
| Left bookrunner: | Barclays
|
| Joint bookrunners: | Goldman Sachs & Co., RBC Capital Markets, Wells Fargo Securities LLC
|
| Senior co-managers: | KeyBanc Capital Markets, SunTrust Robinson Humphrey Inc.
|
| Co-managers: | ABN Amro, Bank of Oklahoma, Fifth Third Securities, Moelis & Co., MUFG
|
| Coupon: | 7 7/8%
|
| Price: | Par
|
| Yield: | 7 7/8%
|
| First call: | July 15, 2018 at 103.938
|
| Equity clawback: | 35% at 107.875 until July 15, 2018
|
| Change-of-control put: | 101%
|
| Trade date: | July 13
|
| Settlement date: | July 18
|
| Ratings: | Moody's: Caa1
|
| S&P: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8% area
|
| Marketing: | Roadshow
|
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