Published on 4/18/2012 in the Prospect News High Yield Daily.
New Issue: Chaparral Energy prices upsized $400 million notes due 2022 at par to yield 7 5/8%
By Paul A. Harris
Portland, Ore., April 18 - Chaparral Energy, Inc. priced an upsized $400 million issue of 10.5-year senior notes (B3/B-) at par to yield 7 5/8% on Wednesday, according to a syndicate source.
The yield printed at the tight end of the 7 5/8% to 7¾% yield talk.
Credit Suisse Securities (USA) LLC, Credit Agricole CIB, J.P. Morgan Securities LLC, RBC Capital Markets and Wells Fargo Securities LLC were the joint bookrunners for the quick-to-market deal, which was upsized from $350 million.
The Oklahoma City-based independent oil and natural gas production and exploration company plans to use the proceeds to fund the tender offer for its 8 7/8% notes due 2017.
| Issuer: | Chaparral Energy, Inc.
|
| Amount: | $400 million, increased from $350 million
|
| Maturity: | Nov. 15, 2022
|
| Securities: | Senior notes
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Credit Agricole CIB, J.P. Morgan Securities LLC, RBC Capital Markets, Wells Fargo Securities LLC
|
| Senior co-managers: | Capital One Southcoast, Inc., SG Americas Securities, LLC, UBS Securities LLC
|
| Co-managers: | Comerica Securities, Inc., KeyBanc Capital Markets Inc., Lloyds Securities Inc., Mitsubishi UFJ Securities (USA), Inc., Scotia Capital (USA) Inc., U.S. Bancorp Investments, Inc.
|
| Coupon: | 7 5/8%
|
| Price: | Par
|
| Yield: | 7 5/8%
|
| Spread: | 567 bps
|
| 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%
|
| Special change-of-control call: | 110% until June 1, 2013
|
| Trade date: | April 18
|
| Settlement date: | May 2
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 7 5/8% to 7¾%
|
| Marketing: | Quick to market
|
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