By Paul A. Harris
Portland, Ore., Sept. 6 – Permian Resources Corp. priced a $500 million issue of Permian Resources Operating, LLC senior notes due Jan. 15, 2032 (B2/BB-/BB-) at par to yield 7% in a Wednesday drive-by, according to market sources.
The yield printed in the middle of the 6 7/8% to 7 1/8% yield talk. Initial guidance was in the low-7% area.
The deal was heard to have played to $1.6 billion of orders, according to a trader, who said that a lot of accounts were in with limit orders at 7%.
The bonds were wrapped around issue price heading into Wednesday’s close: 99 7/8 bid, par 1/8 offered, the source said.
J.P. Morgan Securities LLC managed the notes sale.
The Midland, Tex.-based oil and gas company plans to use the proceeds to repay debt, which may include amounts outstanding under its credit facility and amounts to be assumed in connection with the closing of its merger with Earthstone Energy, Inc.
| Issuer: | Permian Resources Operating, LLC
|
| Amount: | $500 million
|
| Issue: | Senior notes
|
| Maturity: | Jan. 15, 2032
|
| Lead: | J.P. Morgan Securities LLC
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Spread: | 268 bps
|
| First call: | Jan. 15, 2027 at 103.5
|
| Trade date: | Sept. 6
|
| Settlement date: | Sept. 12
|
| Ratings: | Moody’s: B2
|
| S&P: BB-
|
| Fitch: BB-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 6 7/8% to 7 1/8%
|
| Marketing: | Drive-by
|
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