By Paul A. Harris
Portland, Ore., June 13 – Sanchez Energy Corp. launched and priced an upsized $850 million issue of senior notes due Jan. 15, 2023 (B3/B-/) at par to yield 6 1/8% on Friday, according to a syndicate source.
The deal was upsized from $700 million.
The yield printed at the tight end of yield talk in the 6¼% area.
Timing on the deal was accelerated. The roadshow was initially expected to run into the June 16 week.
RBC Capital Markets LLC was the left bookrunner. Credit Suisse Securities (USA) LLC was the joint bookrunner.
The Houston-based oil and gas exploration and development company plans to use the proceeds to fund the Catarina acquisition, to repay revolver debt, including that incurred to fund the acquisition, and for general corporate purposes, including working capital.
Proceeds will also be used to fund the company’s pending acquisition of Catarina and for working capital.
| Issuer: | Sanchez Energy Corp.
|
| Amount: | $850 million, increased from $700 million
|
| Maturity: | Jan. 15, 2023
|
| Securities: | Senior notes
|
| Left bookrunner: | RBC Capital Markets LLC
|
| Joint bookrunner: | Credit Suisse Securities (USA) LLC
|
| Senior co-managers: | Capital One Securities Inc., SunTrust Robinson Humphrey Inc.
|
| Co-managers: | BBVA Securities Inc., BB&T Capital Markets, BMO Capital Markets Corp., Credit Agricole Securities (USA) Inc., Iberia Capital Partners LLC, ING Financial Markets LLC, Mitsubishi UFJ Securities (USA) Inc., SG Americas Securities LLC
|
| Coupon: | 6 1/8%
|
| Price: | Par
|
| Yield: | 6 1/8%
|
| Spread: | 367 bps
|
| First call: | July 15, 2018 at 103.063
|
| Equity clawback: | 35% at 106.125 until July 15, 2017
|
| Change-of-control put: | 101%
|
| Trade date: | June 13
|
| Settlement date: | June 27
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 6¼% area
|
| Marketing: | Roadshow
|
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