By Abigail W. Adams
Portland, Me., Dec. 7 – Permian Resources Operating LLC priced a $500 million add-on to its 7% senior notes due Jan. 15, 2032 (B1/BB-/BB) in a Thursday drive-by at 99.5 to yield 7.082%, according to a market source.
Pricing came at the midpoint of talk for a reoffer price of 99.25 to 99.75.
Initial guidance was for a reoffer price in the 99 area.
The notes will be immediately fungible with the outstanding issue.
The notes are non-callable until Jan. 15, 2027.
BofA Securities Inc. (lead left), Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are active bookrunners for the Rule 144A and Regulation S offering.
Barclays, Capital One Securities Inc., CIBC World Markets Corp., Comerica Securities Inc., Fifth Third Securities Inc., Mizuho Securities USA Inc., PNC Capital Markets LLC, RBC Capital Markets LLC, Regions Securities LLC, Truist Securities Inc. and U.S. Bancorp Investments Inc. are also joint bookrunners.
Proceeds will be used to repay a portion of the amount outstanding under the company’s credit facility and for general corporate purposes.
Permian Resources originally sold $500 million of the 7% notes at par in a Rule 144A and Regulation S issue that settled Sept. 12, 2023.
Permian Resources is a Midland, Tex.-based oil and gas company.
| Issuer: | Permian Resources Operating LLC
|
| Amount: | $500 million
|
| Issue: | Add-on to senior notes
|
| Maturity: | Jan. 15, 2032
|
| Lead left bookrunner: | BofA Securities Inc.
|
| Active joint bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC
|
| Joint bookrunners: | Barclays, Capital One Securities Inc., CIBC World Markets Corp., Comerica Securities Inc., Fifth Third Securities Inc., Mizuho Securities USA Inc., PNC Capital Markets LLC, RBC Capital Markets LLC, Regions Securities LLC, Truist Securities Inc. and U.S. Bancorp Investments Inc.
|
| Coupon: | 7%
|
| Price: | 99.5
|
| Yield: | 7.082%
|
| Spread: | 295 bps
|
| First call: | Jan. 15, 2027 at 103.5
|
| Trade date: | Dec. 7
|
| Settlement date: | Dec. 13
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| Ratings: | Moody’s: B1
|
| S&P: BB-
|
| Fitch: BB
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| Distribution: | Rule 144A and Regulation S offering
|
| Price talk: | 99.25 to 99.75
|
| Marketing: | Drive-by
|
| Original issue: | $500 million issued at par on Sept. 12, 2023
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