Antero Resources sets pace in high-yield market

By Mariana Santibanez

NEW YORK, March 3 (IFR) - Antero Resources showed select E&P names still have access to the high-yield bond market, printing an eight-year senior unsecured bond Tuesday that was increased in size to US$750m.

Jaguar Land Rover and Sirius XM Radio also priced deals, for a total tally of US$2.25bn in today's session amid what was a generally positive mood in the market.

JP Morgan was left-lead on the Ba3/BB rated offering from Antero, which priced at par to yield 5.625%, in line with earlier 5.50%-5.75% initial price thoughts.

Proceeds will repay a portion of the US$1.7bn in outstanding borrowings under its US$4bn credit facility. The senior notes are unsecured and subordinate to the senior secured facility.

JP Morgan was also lead for the Ba3/BB rated 10-year non-call five bond for Sirius XM Radio, which was increased by US$250m to US$1bn.

The 2025 bond priced at par to yield 5.375%, in line with price talk and earlier 5.25%-5.5% whispers. The nearest comp was an outstanding 4 5/8 2023 that was trading to yield 5.05%.

Jaguar Land Rover priced a Ba2/BB rated US$500m five-year senior bond to fund a tender for 8.125% senior notes 2018. JP Morgan (Other OTC: MGHL - news) priced the bond at par to yield 3.50%.

Looking ahead, the newest deal in the pipeline is a US$250m five-year non-call two for Canada-based GFL Environmental. BMO is leading the trade with Credit Suisse (LSE: 0QP5.L - news) on the right.

Pricing is expected next week.

DEALS PRICED:

ANTERO RESOURCES

Antero Resources Corporation (NYSE: AR - news) , rated Ba3/BB, announced a US$500m 8-year NC3 senior unsecured note offering via JPM(left)/WFS/MUFJ/CA (NasdaqGS: CA - news) /CAPONE. Co-managers are BNP (Paris: FR0000131104 - news) /CIBC/DNB (LSE: 0O84.L - news) /FT/HSBC/Scotia/TD/USB/ABN/BBVA/BB&T/Comerica/Ke y/MS/Natixis (LSE: 0IHK.L - news) /PNC/SMBC/ST. UOP: to repay a portion of the outstanding borrowings under its credit facility. BIZ: an independent natural gas and oil company engaged in the acquisition, development and production of unconventional liquids-rich natural gas properties located in the Appalachian Basin in West Virginia, Ohio and Pennsylvania

Whispers: 5.5-5.75%

PRICED: US$750m (upsized from US$500m). Cpn 5.625%. Due 6/1/23 NC3. Ip par. Yld 5.625%. +360bp vs. 1.75% 5/15/23 UST. First (Other OTC: FSTC - news) pay 6/1/15. Equity clawback up to 35% at 105.625% until 6/1/18. MWC T+50bp. Call schedule: 6/1/18 at 104.219%, 6/1/19 at 102.813%, 6/1/20 at 101.406%, 6/1/21 at par. USD101 COC put. Special call 100% of issue at 110 prior to 6/1/16 upon change of control. Settlement date 3/17/15. Cusip # 03674XAD8.

SIRIUS XM RADIO

Sirius XM Radio Inc., expected ratings B1/BB, announced a US$750m 10-year (4/15/25) NC5 senior notes via JPM(left)/BARC/ITI/DB/MS/ST/WFS. Co-managers are BAML/BMO/BNP/CA/RBC (Other OTC: RBCI - news) /USB. 144a/RegS for life. UOP: GCP, including the repayment of revolver drawings and share repurchases. BIZ: Satellite radio broadcasting.

Whispers 5.25-5.5%

PRICE TALK: 5.375% area

PRICED: US$1bn (upsized from US$750m). Cpn 5.375%. Due 4/15/25. Ip par. Yld 5.375%. +326bp vs. 2.00% 2/15/25 UST. First (Shanghai: 603806.SS - news) pay 10/15/15. Equity clawback up to 35% at 105.375% until 4/15/18. MWC T+50bp. USD101 CoC put. Call schedule: 4/15/20 at 102.688%, 4/15/21 at 101.792%, 4/15/22 at 100.896%, 4/15/23 and thereafter at par. Settlement date 3/6/15. Cusip # 82967NAU2.

JAGUAR LAND ROVER

Jaguar Land Rover priced a US$500m five-year senior bond on Tuesday, in order to fund its tender for its 8.125% senior notes due 2018. The carmaker appointed JP Morgan, BofAML, Citi, Credit Suisse and Morgan Stanley (Xetra: 885836 - news) as joint physical bookrunners on the Ba2/BB rated deal, with ANZ, Barclays (LSE: BARC.L - news) , HSBC, Standard Chartered (HKSE: 2888.HK - news) and UBS (LSE: 0R3T.L - news) as passive bookrunners.

Whispers: 3.75%

PRICED: US$500m. Cpn 3.500%. Due 3/15/20. Ip par. Yld 3.500%. +190bp vs. 1.375% 2/29/20 UST. First pay 9/15/15. MWC T+50bp. USD101 COC put. Par call 3-months prior to maturity. Settlement date 3/6/15. Cusip # 47010BAE4.

DEALS PIPELINE:

GFL ENVIRONMENTAL INC

GFL Environmental Inc., ratings tbd, announced a US$250m 5-year nc2 senior note offering via BMO/CS. 144a eligible. Pricing expected next week. UOP: To repay drawings under the revolving credit facility, repay drawings under the unsecured term loan, tender for up to $50mm of the existing 7.500% C$ senior notes and for general corporate purposes including potential acquisitions. BIZ: Environmental services company providing solid and liquid waste collection, treatment and disposal solutions as well as soil remediation services to municipal, industrial and commercial sectors with a leading market presence in Canada.

PEABODY ENERGY (NYSE: BTU - news)

Peabody Energy, expected ratings B2/BB/BB, announced a US$1bn 7-year nc3 senior secured lien notes via joint-physical books BAML/MS. Joint-books are BNP/CITI/CA/CS/HSBC/JPM/PNC. Senior co-managers are NAB SEC/RBS (LSE: RBS.L - news) /SCB. Co-managers are BB&T/BBVA/COMERICA/DB/FITB/GS (KSE: 078935.KS - news) /MUFJ/SOCGEN (Paris: FR0000130809 - news) /SMBC/USB/WFS/WESTPAC. 144a/RegS for life. Pricing expected mid-week. USD101 COC UOP: to fund a tender offer to purchase for cash any and all of the US$650m aggregate principal amount outstanding of its 7 3/8% Senior Notes due 2016 (the "2016 notes"), to fund the redemption or satisfaction and discharge of all 2016 notes that are not tendered in the tender offer and for general corporate purposes, which may include the payment of its federal coal lease expenditures. BIZ: Peabody Energy is the world's largest private-sector coal company and a global leader in sustainable mining, energy access and clean coal solutions. The company serves metallurgical and thermal coal customers in more than 25 countries on six continents.

WHISPERS: High 9-10% area

CAPITAL PRODUCT PARTNERS

Capital Product Partners LCa.P., expected ratings B2/BB-, announced a US$260m 7-year NC3 first priority ship mortgage notes via DB(left)/GS/WFS. Roadshows begin Friday (27Feb)through this week, with pricing expected to follow shortly thereafter. First call at par plus 75% coupon. Equity clawback 35% during the first 3-years. 144a/RegS w/o reg rights. Security: Secured by first priority ship mortgages on 11 vessels. Guarantees: Guaranteed on a secured basis by each of the vessel owning subsidiaries of CPLP.

UOP: Along with a proposed new US$260m senior secured credit facility, will be used to fully repay outstanding indebtedness under the credit facility agreements entered into by CPLP in 2007, 2008 and 2011 and for general corporate purposes. BIZ: Capital Product Partners L.P (NasdaqGS: CPLP - news) . (NASDAQ: CPLP), a Marshall Islands master limited partnership, is an international owner of modern tanker, container and drybulk vessels. The Partnership currently owns 30 vessels, including four Suezmax crude oil tankers, 18 modern MR (Medium Range) product tankers, seven Post Panamax container vessels and one Capesize bulk carrier. All of its vessels are under period charters to BP Shipping Limited, Overseas Shipholding Group Inc., A.P. Moller-Maersk A.S., Hyundai Merchant Marine Co. Ltd (KSE: 011200.KS - news) ., CSSA S.A. (Total S.A (Paris: FR0012417418 - news) .), Repsol Trading S.A. ('Repsol'), Engen Petroleum, Subtec S.A. de C.V., Cosco Bulk Carrier Co. Ltd. and Capital Maritime.

Mid 7% area whispers

COMSTOCK RESOURCES (NYSE: CRK - news)

Comstock Resources Inc, rated Ba3/B+, announced a US$700m 5-year senior secured notes via BAML(left)/BMO. Roadshows extend into this week, with pricing expected to follow shortly thereafter. 144a/RegS. The notes will be guaranteed by each of Comstock's subsidiaries. The notes and the guarantees will be secured by a first priority lien on substantially all of the Company's and its subsidiaries' assets, subject to payment priority in favor of the lenders under a new credit facility described below. Comstock intends to use the net proceeds of the proposed offering to retire its bank credit facility, with remaining proceeds for general corporate purposes. In connection with the offering, the Company intends to enter into a new $50 million bank revolving credit facility. BIZ:Comstock Resources, Inc. is a growing independent energy company based in Frisco, Texas and is engaged in oil and gas acquisitions, exploration and development primarily in Texas and Louisiana.

Whispers: low 9% area (Reporting By Mariana Santibanez; Editing by Shankar Ramakrishnan and Marc Carnegie)