Published on 10/5/2018 in the Prospect News High Yield Daily.
New Issue: W&T Offshore sells $625 million five-year notes at par to yield 9¾%
By Paul A. Harris
Portland, Ore., Oct. 5 – W&T Offshore, Inc. priced a $625 million issue of five-year second-lien notes (B3/B) at par to yield 9¾% on Friday, according to a syndicate source.
The yield came in the middle of yield talk in the 9¾% area.
Initial talk had the bonds coming with a yield in the 10% area, according to a bond trader.
Morgan Stanley & Co. LLC was the global coordinator, as well as a joint bookrunner. The other joint bookrunners were Stifel, Seaport Global, TD Securities, SG CIB, Natixis Securities, ABN Amro and ING.
The Houston-based oil and natural gas exploration and production company plans to use the proceeds to refinance debt.
| Issuer: | W&T Offshore, Inc.
|
| Amount: | $625 million
|
| Maturity: | Nov. 1, 2023
|
| Securities: | Second-lien notes
|
| Global coordinator: | Morgan Stanley & Co. LLC
|
| Bookrunners: | Morgan Stanley, Stifel, Seaport, TD Securities, SG CIB, Natixis Securities, ABN Amro, ING
|
| Coupon: | 9¾%
|
| Price: | Par
|
| Yield: | 9¾%
|
| Spread: | 667 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until Nov. 1, 2020, then callable at 104.875
|
| Equity clawback: | 35% at 109.75 until Nov. 1, 2020
|
| Trade date: | Oct. 5
|
| Settlement date: | Oct. 18
|
| Ratings: | Moody's: B3
|
| S&P: B
|
| Distribution: | Rule 144A for life and Regulation S
|
| Price talk: | 9¾% area
|
| Marketing: | Roadshow
|
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