WildHorse to sell $150 million tap of 6 7/8% notes in Friday drive-by

By Paul A. Harris

Portland, Ore., Sept. 15 – WildHorse Resource Development Corp. plans to price a $150 million add-on to its 6 7/8% senior notes due 2025 (expected ratings Caa1/B) on Friday, according to market sources.

Initial guidance has the deal coming at a reoffer price of 98.25, a trader said.

Wells Fargo Securities LLC is the left bookrunner. BMO Securities, Barclays, BofA Merrill Lynch, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the joint bookrunners.

BBVA Securities Inc., BOK Financial, Capital One, CIBC World Markets, Comerica Securities, Fifth Third Bank, ING, Ramirez and U.S. Bancorp Investments Inc. ere the co-managers.

The Rule 144A and Regulation S with registration rights notes feature a make-whole call until Feb. 1, 2020, then become callable at 105.156. They also feature a 35% equity clawback at 106.875 until Feb. 1, 2020.

The Houston-based independent oil and natural gas company plans to use the proceeds to repay outstanding amounts under its senior secured revolving credit facility.

The original $350 million issue priced at 99.244 to yield 7% on Jan. 27, 2017.

The Rule 144A add-on notes will become immediately fungible with the original notes. The Regulation S add-on notes will become fungible with the original notes following a 40-day cooling period.

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