By Paul A. Harris
Portland, Ore., April 7 – Earthstone Energy Holdings, LLC priced a $550 million issue of five-year senior notes (B3/B+/B+) at par to yield 8% on Thursday, according to market sources.
The yield printed at the tight end of the 8% to 8¼% yield talk, and in the middle of initial guidance in the 8% area.
The deal was four-times oversubscribed at lunch time in New York, according to a sellside source who added that there was significant or better reverse inquiry.
Left bookrunner RBC Capital Markets Corp. will bill and deliver.
Other bookrunners include Wells Fargo Securities LLC and BofA Securities, Inc. as active bookrunners and Truist Securities, Inc., Citizens Capital Markets Inc., KeyBanc Capital Markets Inc., U.S. Bancorp Investments Inc., Fifth Third Securities Inc., PNC Capital Markets LLC.
The issuer is an oil and gas exploration and production based in The Woodlands, Tex.
Proceeds will be used to repay debt, and for general corporate purposes.
| Issuer: | Earthstone Energy Holdings, LLC
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| Amount: | $550 million
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| Securities: | Senior notes
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| Maturity: | April 15, 2027
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| Joint bookrunners: | RBC Capital Markets Corp. (bill and deliver), Wells Fargo Securities LLC and BofA Securities, Inc. are active bookrunners. Truist Securities, Inc., Citizens Capital Markets Inc., KeyBanc Capital Markets Inc., U.S. Bancorp Investments Inc., Fifth Third Securities Inc. and PNC Capital Markets LLC
|
| Co-managers: | First Horizon, Comerica
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| Coupon: | 8%
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| Price: | Par
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| Yield: | 8%
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| Spread: | Treasuries plus 530.7 bps
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| First call: | April 15, 2024 at 106
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| Trade date: | April 7
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| Settlement date: | April 12
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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 for life
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| Price talk: | 8% to 8¼%
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| Marketing: | Roadshow
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