Ascent Resources to sell $350 million eight-year notes on Wednesday; initial talk low 6% area

By Paul A. Harris

Portland, Ore., June 9 – Ascent Resources Utica Holdings, LLC and its wholly owned subsidiary, ARU Finance Corp., plan to price a $350 million offering of eight-year senior notes (expected ratings Caa1/B-/B) in a Wednesday drive-by following a conference call with investors, according to market sources.

Initial guidance has the notes coming to yield in the low 6% area, a trader said.

Wells Fargo Securities LLC is the left bookrunner. Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Fifth Third Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Mizuho Securities USA Inc., MUFG and Truist Securities Inc. are the joint bookrunners.

ABN Amro Inc. and BMO Capital Markets Corp. are the senior co-managers. BOK Financial Securities Inc., CIBC World Markets Corp., CIT Capital Securities Inc., Citizens Capital Markets Inc., Huntington Investment Co., KeyBanc Capital Markets Inc., Morgan Stanley & Co. LLC, PNC Capital Markets LLC, Regions Securities LLC and U.S. Bancorp Investments Inc. are the co-managers.

The Rule 144A and Regulation S for life notes come with three years of call protection.

The Oklahoma City-based natural gas producer plans to use the proceeds to repay debt under its reserve-based lending credit facility.

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