Article/Intelligence
HighPeak Energy Bond to Refi 2026 Debt on Pause After Deal Fails to Garner Interest
HighPeak Energy is pausing its high-yield bond offering after struggling to fill its book, according to sources. The deal may come back to the primary market, sources added, but the energy company will evaluate other options for financing in the interim.
Price talk on the RBC-led $700 million five-year bond, which was downsized from $750 million, was coming with an 11% coupon, with OID, to yield 11.5%. Pricing on the deal widened from initial whispers at 10.75%. A $685 million RBL facility is also included in the financing, which was also downsized from $720 million.
Pricing on HighPeak’s deal was expected on July 9, but book size remained below the transaction, even after downsizing, sources added. Proceeds from the financing would be used to refinance existing debt coming due in September 2026 provided by private lenders, sources added.
Concerns over HighPeak’s location and focus in the Permian Basin dissuaded investors, as well as fairly weak documents, sources noted. Another source noted that a year ago, HighPeak’s deal would have been fine but now there is a strong reticence among investors to get involved in energy names amidst geopolitical concerns. Vital Energy and Moss Creek Resources were cited as comparisons to HighPeak, according to other sources.
A capital structure for HighPeak is below:
The publicly traded HighPeak Energy, which trades on the Nasdaq under HPK, was last quoted at about $9.24 a share on July 15, according to YahooFinance.
Moody’s, S&P and Fitch assigned B2/B+/B+ ratings to HighPeak’s proposed deal. Moody’s said in its rating note that its B1 corporate rating on HighPeak reflects its “small scale and higher leverage, particularly on production, than similarly rated peers.”
HighPeak’s existing S+750 bps 2026 loan was last indicated today at 99.88/101.25, according to Solve.
HighPeak and RBC Capital Markets did not immediately respond to a request for comment.
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