Vermilion Energy shops $400 million eight-year senior notes; initial talk low 7% area

By Paul A. Harris

Portland, Ore., April 19 – Vermilion Energy Inc. is expected to price a $400 million offering of eight-year senior notes (B3//BB-) on Wednesday, according to market sources.

The deal, which was set to kick off on a Tuesday conference call with investors, is in the market with initial guidance in the low 7% area.

Left active bookrunner BofA will bill and deliver. RBC, Wells Fargo and Citigroup are joint active bookrunners. NBC, TD, CIBC and Scotia are joint bookrunners.

ATB, Desjardin and JPMorgan are the co-managers.

The Rule 144A and Regulation S for life notes become callable after three years at par plus 50% of the coupon. They feature a three-year 35% equity clawback at par plus the full coupon during the non-call period and have a 101% poison put.

The Calgary, Alta.-based oil and gas producer plans to use the proceeds to repay debt under its credit facility.

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