By Paul A. Harris
St. Louis, Mo., June 19 - Encore Acquisition Co. priced $150 million of senior subordinated notes due June 15, 2012 (B2/B) at par Wednesday to yield 8 3/8%, according to a syndicate source.
Price talk was for a yield in the 8½% area.
Credit Suisse First Boston was the bookrunner. Co-managers were Deutsche Bank Securities Inc., Fleet Securities, Goldman Sachs & Co., Wachovia Securities, Inc., BNP Paribas, Fortis, Comerica and Frost.
Proceeds from the Rule 144A notes will be used to repay bank debt.
Encore Acquisition is a Fort Worth, Tex.-based company that acquires, develops and explores North American oil and gas reserves.
Issuer: Encore Acquisition Co.
Amount: $150 million
Maturity: June 15, 2012
Type: Senior subordinated notes
Bookrunner: Credit Suisse First Boston
Coupon: 8 3/8%
Price: Par
Yield: 8 3/8%
Price talk: 8½% area
Spread: 362 basis points over the 10-year Treasury
Call features: Callable with a T+50 make-whole call prior to June 15, 2007, then at 104.188, 102.792, 101.396, par on June 15, 2010 and thereafter
Equity clawback: Until June 15, 2005 for up to 35% at 108.375
Settlement date: June 25, 2002 (T+4)
Payment dates: Dec. 15 and June 15, commencing Dec. 15, 2002
Ratings: Moody's: B2
| Standard & Poor's: B
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| Rule 144A CUSIP: | 29255WAA8
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| Price talk: | 8½% area
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