Range Resources sets call for $500M of notes to refinance debt

A Wells Fargo-led bookrunner group has scheduled an investor call today at 11:30 a.m. ET for Range Resources Corp.’s proposed $500 million offering of eight-year (non-call three) senior notes, according to market sources. Same-day pricing is expected for the new issue.

Proceeds of the bonds, along with cash from balance sheet and borrowings under its revolving credit facility, will be used to refinance the company’s 9.25% senior notes due 2026 at a redemption price equal to 106.938%, and for general corporate purposes. As of Jan. 9, the amount outstanding of the 2026 bonds totaled $850 million, according to the offering’s memorandum.

Moody’s today assigned a B1 rating to the proposed bonds, noting the issuance will extend Range Resources’ maturity profile, while eliminating high interest costs. S&P Global Ratings has a BB- rating on the company’s existing unsecured notes.

Range Resources operates as an independent natural-gas, natural-gas liquids and oil company in the United States. Today's print will extend the borrower’s bond curve beyond its existing $600 million of 8.25% senior notes due 2029, which were placed in January 2021 at par. For reference, these notes closed the session yesterday, Jan. 12, at 110.75%, yielding 4.56%.

The new paper will be structured with a first call at par plus 50% of the coupon. BofA Securities, J.P. Morgan, RBC Capital Markets, Barclays, Citi, PNC Capital Markets, Mizuho and MUFG make up the full bookrunner group.