Crescent Energy driving by with $125 million tap of 9¼% notes; initial talk par ½ to 101 area

By Paul A. Harris

Portland, Ore., Sept. 7 – Crescent Energy Co. plans to price a $125 million add-on to the Crescent Energy Finance LLC 9¼% senior notes due Feb. 15, 2028 (expected ratings B1/BB-/BB-) in a Thursday drive-by, according to market sources.

The Rule 144A and Regulation S for life deal, which was scheduled to kick off on a Thursday morning conference call with investors, is in the market with initial price guidance in the par ½ to 101 area.

The notes become subject to their initial call on Feb. 15, 2025 at 104.625.

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

The Houston-based independent energy company plans to use the proceeds to fund a portion of its acquisition of the August Western Eagle Ford. Proceeds will be used in conjunction with the $135 million equity raise priced Wednesday night. Any remaining proceeds will be used for general corporate purposes. If the August Western Eagle Ford acquisition is not completed, then all proceeds will be used for general corporate purposes.

The original $400 million issue priced in January 2023. A previous $300 million add-on priced in July.

The add-on notes will immediately become fungible with all of the outstanding 9¼% notes due 2028.

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