By Paul A. Harris
St. Louis, Feb. 1 - Petroleum Development Corp. (PDC) priced a downsized $203 million issue of 12% 10-year senior unsecured notes (B3) at 98.572 to yield 12¼% on Friday afternoon, according to an informed source.
The issue, which generated about $200 million of proceeds, was downsized from $250 million.
Shortly before the terms were made available, a market source told Prospect News that the deal was heard to have been launched at 12¼%.
Morgan Stanley was the left bookrunner for the offering, which was place via Rule 144A with registration rights and via Regulation S. J.P. Morgan Securities Inc. was the joint bookrunner. The co-managers were BNP Paribas and Wachovia Securities.
Proceeds will be used to repay borrowings under the company's revolving credit facility and for general corporate purposes.
PDC is a Bridgeport, W.Va., independent energy company engaged in the development, production and marketing of natural gas and oil. Its operations are focused in the Rocky Mountains with additional operations in the Appalachian Basin and Michigan.
| Issuer: | Petroleum Development Corp.
|
| Face amount: | $203 million, decreased from $250 million
|
| Proceeds: | $200 million (approximate)
|
| Maturity: | Feb. 15, 2018
|
| Security description: | Senior unsecured notes
|
| Left bookrunner: | Morgan Stanley
|
| Joint bookrunner: | J.P. Morgan Securities Inc.
|
| Co-managers: | BNP Paribas, Wachovia Securities
|
| Coupon: | 12%
|
| Price: | 98.572
|
| Yield: | 12¼%
|
| Spread: | 867 bps
|
| Call features: | Callable on Feb. 15, 2013 at 106.0, 104.0, 102.0, par on and after Feb. 15, 2016
|
| Equity clawback: | Until Feb. 15, 2011 for 35% at 112.0
|
| Trade date: | Feb. 1
|
| Settlement date: | Feb. 8
|
| Rating: | Moody's: B3
|
| Distribution: | Rule 144A with registration rights/Regulation S
|
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