By Paul A. Harris
St. Louis, May 1 - Dune Energy, Inc. priced an upsized $300 issue of five-year senior secured notes (Caa2/B-) at par to yield 10½% on Tuesday, according to an informed source.
The notes priced on top of price talk.
The issue was upsized from $285 million.
Jefferies & Co. ran the books for the notes, which were issued via Rule 144A with registration rights and via Regulation S.
Proceeds will be used to finance the acquisition of Goldking Energy Corp. common stock from Goldking Energy Holdings, LP and to refinance existing Dune debt.
The issuer is a Houston-based energy company.
| Issuer: | Dune Energy, Inc.
|
| Amount: | $300 million (increased from $285 million)
|
| Maturity: | June 1, 2012
|
| Security description: | Senior secured notes
|
| Bookrunner: | Jefferies & Co.
|
| Coupon: | 10½%
|
| Price: | Par
|
| Yield: | 10½%
|
| Spread: | 596 bps
|
| Call features: | Callable on June 1, 2010 at 105.25, par on or after June 1, 2011
|
| Equity clawback: | Until June 1, 2010 for 35% at 110.50
|
| Change-of-control put: | 101
|
| Trade date: | May 1
|
| Settlement date: | May 15
|
| Ratings: | Moody's: Caa2
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A with registration rights/Regulation S
|
| Price talk: | 10½% area
|
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