By Paul A. Harris
Portland, Ore., Feb. 7 – Crescent Energy Finance LLC, formerly known as Independence Energy Finance LLC, priced an upsized $200 million add-on to the Independence Energy Finance 7¼% senior notes due May 1, 2026 (B2/B+) at 101 in a Monday drive-by, according to market sources.
The issue price came on top of price talk. Initial guidance was in the 101 area.
The issue size increased from $150 million.
The execution renders a 6.894% yield to worst and a 6.968% yield to maturity.
BofA Securities Inc. was at the left of a syndicate of joint bookrunners that also included J.P. Morgan Securities LLC, KKR Capital Markets LLC, RBC Capital Markets LLC, Wells Fargo Securities LLC, Fifth Third Securities Inc., KeyBanc Capital Markets Inc., Mizuho Securities USA Inc. and Truist Securities Inc.
Crescent Energy was formed in the merger of Independence Energy LLC and Contango Oil & Gas Co., which was completed in December 2021.
The Houston-based oil and gas exploration and production company plans to use the proceeds to pay down its revolver.
| Issuer: | Crescent Energy Finance LLC
|
| Amount: | $200 million, increased from $150 million
|
| Issue: | Senior notes
|
| Maturity: | May 1, 2026
|
| Bookrunners: | BofA Securities Inc., J.P. Morgan Securities LLC, KKR Capital Markets LLC, RBC Capital Markets LLC, Wells Fargo Securities LLC, Fifth Third Securities Inc., KeyBanc Capital Markets Inc., Mizuho Securities USA Inc. and Truist Securities Inc.
|
| Coupon: | 7¼%
|
| Price: | 101
|
| Yield to worst: | 6.894%
|
| Yield to maturity: | 6.968%
|
| Spread: | 525 bps
|
| First call: | May 1, 2023 at 103.625
|
| Trade date: | Feb. 7
|
| Settlement date: | Feb. 10
|
| Ratings: | Moody's: B2
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 101
|
| Marketing: | Drive-by
|
| Original issue: | $500 million priced in April 2021
|
| Fungibility: | Add-on notes will immediately become fungible with the original notes
|
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