By Andrea Heisinger
New York, June 19 - Newfield Exploration Co. sold an upsized $1 billion of 5 5/8% 12-year senior notes on Tuesday at par, a source close to the deal said.
The bonds were priced at the tight end of both whispered talk in the high 5% yield area and revised guidance in the 5 5/8% to 5¾% range. The size of the trade was increased from $750 million.
The notes (Ba1/BBB-/BB+) were priced at a spread of Treasuries plus 400.7 basis points.
The notes have a make-whole call at 50 bps over Treasuries and feature a change-of-control put at 101%.
Wells Fargo Securities LLC was the bookrunner.
Co-managers were J.P. Morgan Securities LLC, Goldman Sachs & Co., Bank of Tokyo Mitsubishi, DNB NOR Markets Inc., Barclays Capital Inc., Mizuho Securities USA Inc., CIBC World Markets Corp., Sumitomo, U.S. Bancorp Investments Inc., RBC Capital Markets LLC and Citigroup Global Markets Inc.
Proceeds will be used to purchase up to $550 million of notes due 2016 in a tender offer, to repay a portion of borrowings under credit arrangements used to fund the redemption of 6 5/8% senior subordinated notes, and for general working capital purposes.
The independent energy company is based in the Woodlands, Texas.
| Issuer: | Newfield Exploration Co.
|
| Issue: | Senior notes
|
| Amount: | $1 billion, increased from $750 million
|
| Maturity: | July 1, 2024
|
| Bookrunner: | Wells Fargo Securities LLC
|
| Co-managers: | J.P. Morgan Securities LLC, Goldman Sachs & Co., Bank of Tokyo Mitsubishi, DNB NOR Markets Inc., Barclays Capital Inc., Mizuho Securities USA Inc., CIBC World Markets Corp., Sumitomo, U.S. Bancorp Investments Inc., RBC Capital Markets LLC, Citigroup Global Markets Inc.
|
| Coupon: | 5 5/8%
|
| Price: | Par
|
| Yield: | 5 5/8%
|
| Spread: | Treasuries plus 400.7 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Change-of-control put: | 101%
|
| Trade date: | June 19
|
| Settlement date: | June 26
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BBB-
|
| Fitch: BB+
|
| Price talk: | High 5% yield area (whispered), 5 5/8% to 5¾% (revised)
|
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