New Issue: Encore sells $150 million 10-year notes to yield 6¼%

By Paul A. Harris

St. Louis, March 30 - Encore Acquisition Co. sold $150 million of 10-year senior subordinated notes (B2/B) Tuesday at par to yield 6¼%, a syndicate source said.

Price talk was 6¼% to 6½%.

Goldman Sachs & Co. ran the books on the Rule 144A issue. Credit Suisse First Boston was joint lead manager. The co-managers were Fleet Securities, Deutsche Bank Securities, JP Morgan, BNP Paribas, Fortis, KeyBank and Stanford Group.

Proceeds will be used to fund the Cortez Oil & Gas Inc. acquisition, announced on March 2, and to repay bank debt.

The issuer is a Fort Worth, Texas-based independent energy company engaged in the acquisition, development and exploitation of North American oil and natural gas reserves.

Issuer:	Encore Acquisition Co.
Amount:	$150 million
Maturity:	April 15, 2014
Security description:	Senior subordinated notes
Bookrunner:	Goldman Sachs & Co.
Joint lead manager:	Credit Suisse First Boston
Co-managers:	Fleet Securities, Deutsche Bank Securities, JP Morgan, BNP Paribas, Fortis, KeyBank, Stanford Group
Coupon:	6¼%
Price:	Par
Yield:	6¼%
Spread:	236 basis points
Call features:	Callable after April 15, 2009 at 103.125, 102.167, 101.042, par on or after April 15, 2012
Pricing date:	March 30
Settlement date:	April 2
Ratings:	Moody's: B2
	Standard & Poor's: B
Price talk:	6¼%-6½%

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