Published on 11/2/2012 in the Prospect News High Yield Daily.
New Issue: Chaparral sells $150 million tap of 7 5/8% notes due 2022 at 104.5 to yield 6.846%
By Paul A. Harris
Portland, Ore., Nov. 2 - Chaparral Energy, Inc. priced a $150 million add-on to its 7 5/8% senior notes due Nov. 15, 2022 (B3/B-/) at 104.5 to yield 6.846% on Friday, according to a syndicate source.
The reoffer price came at the rich end of the 104.25 to 104.5 price talk.
Wells Fargo Securities LLC, Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and RBC Capital Markets LLC were the joint bookrunners for the quick-to-market deal.
The Oklahoma City-based oil and natural gas production and exploration company plans to use the proceeds to repay revolver debt and for general corporate purposes.
| Issuer: | Chaparral Energy, Inc.
|
| Face amount: | $150 million
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| Proceeds: | $156.75 million
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| Maturity: | Nov. 15, 2022
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| Security description: | Add-on to 7 5/8% senior notes due Nov. 15, 2022
|
| Bookrunners: | Wells Fargo Securities LLC, Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, RBC Capital Markets LLC
|
| Senior co-managers: | Capital One Southcoast Inc., Natixis Securities Americas LLC, SG CIB, UBS Securities LLC
|
| Co-managers: | Comerica Securities Inc., KeyBanc Capital Markets Inc., Mitsubishi UFJ Securities (USA) Inc., Scotia Capital (USA) Inc., U.S. Bancorp Investments Inc.
|
| Coupon: | 7 5/8%
|
| Price: | 104.5
|
| Yield: | 6.846%
|
| First call: | Callable after May 15, 2017 at 103.813
|
| Equity clawback: | 35% at 107.625 until May 15, 2015
|
| Change-of-control put: | 101%
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| Special change-of-control call: | 110% until June 1, 2013
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| Trade date: | Nov. 2
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| Settlement date: | Nov. 15
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| Ratings: | Moody's: B3
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| Standard & Poor's: B-
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| Distribution: | Rule 144A and Regulation S with registration rights
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| Price talk: | 104.25 to 104.5
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| Marketing: | Quick to market
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| Original issue: | $400 million issue priced at par on April 18, 2012
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| Total issue size: | $550 million
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