Published on 12/14/2020 in the Prospect News High Yield Daily.
New Issue: Ascent Resources prices $300 million 8¼% eight-year notes at par
By Paul A. Harris
Portland, Ore., Dec. 14 – Ascent Resources Utica Holdings LLC and ARU Finance Corp. priced a $300 million issue of eight-year senior notes (Caa1/B-/B) at par to yield 8¼% on Tuesday, according to market sources.
The yield printed 12.5 basis points through yield talk in the 8½% area. Initial talk was in the high 8% to 9% area.
Timing was accelerated. When announced on Monday morning the deal was scheduled to remain in the market until Tuesday.
Wells Fargo Securities LLC was the left bookrunner. Additional bookrunners were Barclays, Citigroup Global Markets Inc., Credit Suisse Securities USA LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, MUFG, Truist Securities Inc. and Mizuho Securities USA LLC.
The Oklahoma City-based oil and gas company plans to use the proceeds to repay outstanding revolver borrowings.
| Issuers: | Ascent Resources Utica Holdings, LLC and ARU Finance Corp.
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| Amount: | $300 million
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| Maturity: | Dec. 31, 2028
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| Securities: | Senior notes
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| Bookrunners: | Wells Fargo Securities LLC, Barclays, Citigroup Global Markets Inc., Credit Suisse Securities USA LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, MUFG, Truist Securities Inc. and Mizuho Securities USA LLC
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| Senior co-managers: | BMO Capital Markets Corp. and Fifth Third Securities, Inc.
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| Co-managers: | BOK Financial Securities, Inc., CIBC World Markets Corp., CIT Capital Securities LLC, Citizens Capital Markets Inc., KeyBanc Capital Markets Inc., PNC Capital Markets LLC, Regions Securities LLC and U.S. Bancorp Investments Inc.
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| Coupon: | 8¼%
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| Price: | Par
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| Yield: | 8¼%
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| Spread: | 751 bps
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| First call: | Dec. 31, 2023 at 104.125
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| Trade date: | Dec. 14
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| Settlement date: | Dec. 17
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| Ratings: | Moody’s: Caa1
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| S&P: B-
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| Fitch: B
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 8½% area
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| Marketing: | Drive-by
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