Published on 6/9/2021 in the Prospect News High Yield Daily.
New Issue: Ascent Resources prices upsized $400 million 5 7/8% eight-year senior notes at par
By Paul A. Harris
Portland, Ore., June 9 – Ascent Resources Utica Holdings, LLC and ARU Finance Corp. priced an upsized $400 million issue of eight-year senior notes (Caa1/B/B) at par to yield 5 7/8% in a Wednesday drive-by, according to market sources.
The issue size increased from $350 million.
The yield printed at the tight end of yield talk in the 6% area. Initial guidance was in the low 6% area.
Wells Fargo Securities LLC was the left bookrunner. Joint bookrunners were J.P. Morgan Securities LLC, Citigroup Global Markets Inc., MUFG, Truist Securities Inc., Mizuho Securities USA Inc., Barclays, Credit Suisse Securities (USA) LLC, Fifth Third Securities Inc. and Goldman Sachs & Co. LLC.
The Oklahoma City-based natural gas producer plans to use the proceeds to repay debt under its reserve-based lending credit facility.
| Issuers: | Ascent Resources Utica Holdings, LLC and ARU Finance Corp.
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| Amount: | $400 million, increased from $350 million
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| Maturity: | June 30, 2029
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| Securities: | Senior notes
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| Left bookrunner: | Wells Fargo Securities LLC
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| Joint bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc., MUFG, Truist Securities Inc., Mizuho Securities USA Inc., Barclays, Credit Suisse Securities (USA) LLC, Fifth Third Securities Inc. and Goldman Sachs & Co. LLC
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| Senior co-managers: | ABN Amro Securities (USA) LLC and BMO Capital Markets Corp.
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| Co-managers: | CIBC World Markets Corp., Citizens Capital Markets Inc., PNC Capital Markets LLC, Regions Securities LLC, U.S. Bancorp Investments Inc., KeyBanc Capital Markets Inc., BOK Financial Securities Inc., CIT Capital Securities LLC, Huntington Securities Inc. and Morgan Stanley & Co. LLC
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| Coupon: | 5 7/8%
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| Price: | Par
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| Yield: | 5 7/8%
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| Spread: | 458 bps
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| Call protection: | Three years
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| Trade date: | June 9
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| Settlement date: | June 14
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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: | 6% area
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| Marketing: | Drive-by
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