By Paul A. Harris
Portland, Ore., Jan. 26 – Aethon United BR LP and Aethon United Finance Corp. priced a $750 million issue of five-year senior notes (B3/B/B) at par to yield 8¼% on Tuesday, according to market sources.
The yield printed in the middle of revised yield talk in the 8¼% area, which had tightened from earlier official talk of 8½% to 8¾%. Initial guidance was in the 8¾% area.
The deal was heard to be playing to $1.6 billion of interest, most of it from investors who came into the deal by the process of reverse inquiry, a bond trader said.
Left lead bookrunner RBC Capital Markets LLC will bill and deliver. Joint active bookrunners were J.P. Morgan Securities LLC, Truist Securities Inc. and Citigroup Global Markets Inc.
BofA Securities Inc., BBVA Securities Inc., CIBC World Markets Corp., Citizens Capital Markets Inc. and KeyBanc Capital Markets Inc. were also joint bookrunners.
The Dallas-based private oil and gas company plans to use the proceeds to refinance its second-lien term loan, as well as to pay down its revolver and for general corporate purposes.
| Issuers: | Aethon United BR LP and Aethon United Finance Corp.
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| Amount: | $750 million
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| Maturity: | Feb. 15, 2026
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| Securities: | Senior notes
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| Left lead bookrunner: | RBC Capital Markets LLC (bill and deliver)
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| Joint active bookrunners: | J.P. Morgan Securities LLC, Truist Securities Inc. and Citigroup Global Markets Inc.
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| Joint bookrunners: | BofA Securities Inc., BBVA Securities Inc., CIBC World Markets Corp., Citizens Capital Markets Inc. and KeyBanc Capital Markets Inc.
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| Co-managers: | CIT Capital Securities LLC, EIG, Jefferies LLC and TD Securities (USA) LLC
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| Coupon: | 8¼%
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| Price: | Par
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| Yield: | 8¼%
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| Spread: | 782.5 bps
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| First call: | Feb. 15, 2023 at 104.125
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| Trade date: | Jan. 26
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| Settlement date: | Feb. 2
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| Ratings: | Moody’s: B3
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| S&P: B
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| Fitch: B
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | 8¼% area, revised from 8½% to 8¾%
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| Marketing: | Roadshow
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