By Paul A. Harris
St. Louis, June 30 - Encore Acquisition Co. priced an upsized $300 million issue of 6% 10-year senior subordinated notes (B2/B) at 98.16 to yield 6¼% in a quick-to-market transaction Thursday, according to a market source.
The yield came on top of the 6¼% area price talk.
Credit Suisse First Boston ran the books.
The issue was upsized from $150 million.
Of the proceeds, $150 million will be used to repay bank debt and the remaining $150 million will be used to exercise the make-whole call on the company's 8 3/8% notes due in 2012.
The issuer is a Fort Worth, Texas-based oil and gas exploration and production company.
| Issuer: | Encore Acquisition Co.
|
| Amount: | $300 million (increased from $150 million)
|
| Maturity: | July 15, 2015
|
| Security description: | Senior subordinated notes
|
| Bookrunner: | Credit Suisse First Boston
|
| Coupon: | 6%
|
| Price: | 98.16
|
| Yield: | 6¼%
|
| Spread: | 229 basis points
|
| Call features: | Callable after July 15, 2010 at 103, then 102, 101, declining to par on and after July 15, 2013
|
| Trade date: | June 30
|
| Settlement date: | July 13
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B
|
| Price talk: | 6¼% area
|
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