By Paul A. Harris
Portland, Ore., Jan. 18 – Extraction Oil & Gas, Inc. priced an upsized $750 million issue of eight-year senior notes (B3/B) at par to yield 5 5/8% in a quick-to-market Thursday sale, according to a syndicate source.
The issue size was increased from $600 million.
The yield came in the middle of the 5½% to 5¾% yield talk.
Credit Suisse Securities (USA) LLC, Barclays, Goldman Sachs & Co., SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC were joint bookrunners.
The Denver-based oil and gas producer plans to use the proceeds to refinance its 7 7/8% senior notes due 2021.
Extraction Oil & Gas is focused on Central Colorado’s Wattenberg Field.
| Issuer: | Extraction Oil & Gas, Inc.
|
| Amount: | $750 million, increased from $600 million
|
| Maturity: | Feb. 1, 2026
|
| Securities: | Senior notes
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Barclays, Goldman Sachs & Co., SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC
|
| Coupon: | 5 5/8%
|
| Price: | Par
|
| Yield: | 5 5/8%
|
| Spread: | 304 bps
|
| First call: | Feb. 1, 2021 at 104.219
|
| Equity clawback: | 35% at 105.625 until Feb. 1, 2021
|
| Trade date: | Jan. 18
|
| Settlement date: | Jan. 25
|
| Ratings: | Moody's: B3
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5½% to 5¾%
|
| Marketing: | Quick to market
|
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