Aethon issues price talk on $750M offering of five-year unsecured notes

Aethon United BR LP has released price talk on its $750 million offering of five-year (non-call two) unsecured notes at 8.50%-8.75%. Books close today at 3 p.m. ET, with pricing expected to follow thereafter.

The bonds launched yesterday via lead left bookrunner RBC. Joint active bookrunners are J.P. Morgan, Truist and Citi, while joint bookrunners are BofA Securities, BBVA, CIBC, Citizens and KeyBanc.

Proceeds will be used to refinance the company's second-lien term loan, partially repay RBL borrowings and for general corporate purposes.

Corporate ratings are B-/B2/B from S&P Global Ratings, Moody’s and Fitch, with issue ratings at B/B3/B. Ratings has assigned a recovery rating of 2.

Aethon launched a $700 million offering in September 2020, but the deal did not price.

Dallas-based Aethon United is a natural gas company primarily engaged in the development, exploitation and exploration of natural gas properties, primarily in the Haynesville Basin.