Published on 9/10/2020 in the Prospect News High Yield Daily.
New Issue: PDC Energy prices $150 million tap of 5¾% notes due 2026 at 99 to yield 5.959%
By Paul A. Harris
Portland, Ore., Sept. 10 – PDC Energy, Inc. priced a $150 million add-on to its 5¾% senior notes due May 15, 2026 (Ba3/BB) at 99 to yield 5.959% in a Thursday drive-by, according to market sources.
The deal came at the cheap end of the 99 to 99.5 price talk. Initial talk was 99 to par.
BofA Securities Inc. was the left bookrunner. Joint bookrunners were J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BMO Capital Markets Corp., TD Securities (USA) LLC.
The company originally sold $600 million of the notes in November 2017.
The Denver-based energy exploration and production company plans to use the proceeds to pay down its revolving credit facility and for general corporate purposes.
| Issuer: | PDC Energy, Inc.
|
| Amount: | $150 million
|
| Maturity: | May 15, 2026
|
| Security description: | Add-on to 5¾% senior notes due May 15, 2026
|
| Left bookrunner: | BofA Securities Inc.
|
| Joint bookrunners: | J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BMO Capital Markets Corp., TD Securities (USA) LLC
|
| Senior co-managers: | BBVA Securities Inc., U.S. Bancorp Investments Inc., Scotia Capital (USA) Inc., CIBC World Markets Corp., Citigroup Global Markets Inc., KeyBanc Capital Markets Inc. and PNC Capital Markets LLC
|
| Co-managers: | Capital One Securities Inc., Truist Securities Inc., Fifth Third Securities Inc., Comerica Securities Inc., BOK Financial Securities Inc., Credit Agricole Securities (USA) Inc. and TCB Capital Markets
|
| Coupon: | 5¾%
|
| Price: | 99
|
| Yield to worst: | 5.959%
|
| Spread: | 562 bps
|
| Call option: | Make-whole call until May 15, 2021; at 104.313 in 2021; at 102.875 in 2022; at 101.438 in 2023; par in 2024 and thereafter
|
| Equity clawback: | Before May 15, 2021, up to 35% at 105.75
|
| Change of control: | At 101
|
| Trade date: | Sept. 10
|
| Settlement date: | Sept. 15
|
| Ratings: | Moody's: Ba3
|
| S&P: BB
|
| Distribution: | SEC registered
|
| Price talk: | 99 to 99.5
|
| Marketing: | Drive-by
|
| Original issue: | $600 million priced in November 2017
|
| Fungibility: | Add-on notes expected to immediately become fungible with existing notes
|
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