Published on 5/24/2011 in the Prospect News High Yield Daily.
New Issue: Eagle Rock Energy prices $300 million 8 3/8% eight-year notes at 99.279 to yield 8½%
By Paul A. Harris
Portland, Ore., May 24 - Eagle Rock Energy Partners LP and Eagle Rock Energy Finance Corp. priced a $300 million issue of 8 3/8% eight-year senior notes (B3/B-) at 99.279 to yield 8½% on Tuesday, according to an informed source.
The yield printed at the wide end of the 8¼% to 8½% price talk.
Wells Fargo Securities LLC was the left bookrunner. Bank of America Merrill Lynch, BNP Paribas Securities Corp. and RBS Securities Inc. were the joint bookrunners.
The Houston-based natural gas company plans to use the proceeds to repay revolver borrowings and debt assumed in the Crow Creek acquisition and for general corporate purposes.
| Issuers: | Eagle Rock Energy Partners LP and Eagle Rock Energy Finance Corp.
|
| Face amount: | $300 million
|
| Proceeds: | $297,837,000
|
| Maturity: | June 1, 2019
|
| Securities: | Senior notes
|
| Left bookrunner: | Wells Fargo Securities LLC
|
| Joint bookrunners: | Bank of America Merrill Lynch, BNP Paribas Securities Corp., RBS Securities Inc.
|
| Senior co-managers: | Banco Bilbao Vizcaya Argentaria, SA, Citigroup Global Markets, Inc., Comerica Securities, Inc., ING Financial Markets LLC, Morgan Keegan & Co., Inc., RBC Capital Markets, LLC, Scotia Capital (USA) Inc., UBS Securities LLC
|
| Co-managers: | Capital One Southcoast, Inc., U.S. Bancorp Investments, Inc.
|
| Coupon: | 8 3/8%
|
| Price: | 99.279
|
| Yield: | 8½%
|
| Spread: | 580 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until June 1, 2015, then callable at 104.188, 102.094, par on and after June 1, 2017
|
| Equity clawback: | 35% at 108.375 until June 1, 2014
|
| Change of control put: | 101%
|
| Trade date: | May 24
|
| Settlement date: | May 27
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 8¼% to 8½%
|
| Marketing: | Roadshow
|
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