Crescent Energy driving by with $150 million tap of 7¼% notes due 2026; initial talk 101 area

By Paul A. Harris

Portland, Ore., Feb. 7 – Crescent Energy Finance LLC, formerly known as Independence Energy Finance LLC, plans to price a $150 million add-on to the Independence Energy Finance 7¼% senior notes due May 1, 2026 (B2/B+) in a Monday drive-by trailing a conference call with investors, according to market sources.

Initial price talk has the Rule 144A for life notes selling in the 101 area, a trader said.

BofA Securities Inc., J.P. Morgan Securities LLC, KKR Capital Markets LLC, RBC Capital Markets LLC, Wells Fargo Securities LLC, Fifth Third Securities Inc., KeyBanc Capital Markets Inc., Mizuho Securities USA Inc. and Truist Securities Inc. are the joint bookrunners.

The notes become callable on May 1, 2023 at 103.625. They feature a 40% equity clawback at 107.25 during the non-call period. They also feature a 101% poison put.

Crescent Energy was formed in the merger of Independence Energy LLC and Contango Oil & Gas Co., which was completed in December 2021.

The Houston-based oil and gas exploration and production company plans to use the proceeds to pay down its revolver.

The original $500 million issue priced in April 2021.

The add-on notes will immediately become fungible with the original notes.

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