New Issue: Memorial Resource sells upsized $600 million eight-year notes at par to yield 5 7/8%

By Paul A. Harris

Portland, Ore., June 25 – Memorial Resource Development Corp. doubled the size of its deal to $600 million from $300 million and priced the issue of eight-year senior notes (Caa1/B-/) at par to yield 5 7/8%, according to a syndicate source.

The yield printed at the tight end of yield talk in the 6% area; that talk came at the tight end of earlier guidance of 6% to 6¼%, a trader said.

Citigroup Global Markets Inc., BofA Merrill Lynch, Barclays, BMO Capital Markets, J.P. Morgan Securities LLC, RBC Capital Markets and Wells Fargo Securities LLC were the joint bookrunners.

The Houston-based upstream master limited partnership plans to use the proceeds to repay bank debt.

Issuer:	Memorial Resource Development Corp.
Amount:	$600 million, increased from $300 million
Maturity:	July 1, 2022
Securities:	Senior notes
Bookrunners:	Citigroup Global Markets Inc., BofA Merrill Lynch, Barclays, BMO Capital Markets, J.P. Morgan Securities LLC, RBC Capital Markets, Wells Fargo Securities LLC
Co-managers:	Capital One, Comerica Securities, Credit Agricole CIB, Goldman Sachs & Co., ING, Mitsubishi UFJ Securities, Natixis, Wedbush
Coupon:	5 7/8%
Price:	Par
Yield:	5 7/8%
Spread:	372 bps
First call:	July 1, 2017 at 104.406
Trade date:	June 25
Settlement date:	July 10
Ratings:	Moody's: Caa1
	Standard & Poor's: B-
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	6% area
Marketing:	Quick to market

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