Crescent Energy prices add-on 7.25% senior notes due 2026 at 101; terms

Crescent Energy Co. on Feb. 7 priced a $200 million add-on to its existing 7.25% senior notes due May 1, 2026, at talk, according to market sources. Bookrunners for the tack-on were BofA Securities, J.P. Morgan, KKR Capital Markets, RBC Capital Markets, Wells Fargo, Fifth Third, Key Banc Capital Markets, Mizuho and Truist. The offering was upsized from $150 million.

Crescent Energy operates as an independent energy company. It holds a portfolio of oil and gas assets in key proven basins across the Lower 48 states of the U.S. The company was formed through the merger of Independence Energy and Contango Oil & Gas. Crescent Energy's indirect subsidiary, Crescent Energy Finance LLC, is the issuing entity for the bonds. Proceeds are earmarked to repay a portion of the amounts outstanding under a revolving credit facility.

The initial $500 million tranche was priced at par in April 2021 via Independence Energy. Existing issue ratings are B+/B2. Corporate ratings are B/B1. S&P Global Ratings today, while noting that its ratings on the company and its existing debt are unchanged, referenced the current debt raise as "leverage neutral."

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