Published on 11/12/2010 in the Prospect News High Yield Daily.
New Issue: Stone Energy sells $100 million add-on to 8 5/8% notes due 2017 to yield 8.499%
By Paul A. Harris
St. Louis, Nov. 12 - Stone Energy Corp. priced a $100 million add-on to its 8 5/8% senior notes due Feb. 1, 2017 (Caa1/B/) at 100.5 to yield 8.499% on Friday, according to an informed source.
The reoffer price came beyond the cheap end of the 100.75 price talk.
Bank of America Merrill Lynch ran the books.
The Lafayette, La.-based oil and gas company will use the proceeds for general corporate purposes, which will include the repayment of bank debt and the payment of amounts due related to the acquisition of additional acreage in Appalachia.
| Issuer: | Stone Energy Corp.
|
| Face amount: | $100 million
|
| Proceeds: | $100.5 million
|
| Maturity: | Feb. 1, 2017
|
| Security description: | Add-on to the 8 5/8% senior notes
|
| Bookrunner: | Bank of America Merrill Lynch
|
| Senior co-managers: | Barclays Capital Inc., BNP Paribas Securities Corp., Capital One Southcoast Inc., Natixis Bleichroeder, Scotia Capital (USA) Inc., TD Securities (USA) LLC
|
| Co-managers: | Morgan Keegan & Co. Inc., US Bancorp Investments Inc., Tudor Pickering Holt & Co Securities Inc., Daiwa Capital Markets America Inc.
|
| Coupon: | 8 5/8%
|
| Price: | 100.5
|
| Yield: | 8.499%
|
| Spread: | 678 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps until Feb. 1, 2014, then callable at a premium
|
| Equity clawback: | 35% at 108.625 until Feb. 1, 2013
|
| Trade date: | Nov. 12
|
| Settlement date: | Nov. 17 with accrued interest
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B
|
| Distribution: | SEC Registered
|
| Price talk: | 100.75
|
| Marketing: | Quick to market
|
| Original issue: | $275 million priced at 98.713 to yield 8 7/8% on Jan. 13, 2010
|
| Total issue size: | $375 million
|
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