By Paul A. Harris
St. Louis, Nov. 16 - Encore Acquisition Co. priced a quick-to-market $150 million issue of 7¼% 12-year senior subordinated notes (B2/B) at 98.039 on Wednesday to yield 7½%, according to a market source.
The yield came on the wide end of the 7 3/8% to 7½% price talk.
Citigroup ran the books for the issue, which had been registered with the U.S. Securities and Exchange Commission.
Proceeds will be used to repay debt outstanding under Encore's revolver.
Encore Acquisition is a Fort Worth, Texas, 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: | Dec. 1, 2017
|
| Security description: | Senior subordinated notes
|
| Bookrunner: | Citigroup
|
| Coupon: | 7¼%
|
| Price: | 98.039
|
| Yield: | 7½%
|
| Spread: | 302 basis points
|
| Call features: | Callable after Dec. 1, 2010 at 103.625, 102.417, 101.208, par on and after Dec. 1, 2013
|
| Equity clawback: | Until Dec. 1, 2008 for 35% at 107.25
|
| Trade date: | Nov. 16
|
| Settlement date: | Nov. 23
|
| Rating: | Moody's: B2
|
| Standard & Poor's: B
|
| Price talk: | 7 3/8%-7½%
|
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