Endeavor Energy driving by with $500 million of five-year notes; guidance low 7% area

By Paul A. Harris

Portland, Ore., June 2 – Endeavor Energy Resources LP and EER Finance Inc. plan to price a $500 million offering of five-year senior notes (existing ratings B1/BB-/BB+) in a Tuesday drive-by following a mid-morning conference call with investors, according to market sources.

Initial guidance has the notes coming to yield in the low 7% area, traders say.

Goldman Sachs & Co. LLC is the left physical bookrunner. BMO Capital Markets Corp. and J.P. Morgan Securities LLC are the joint physical bookrunners.

MUFG, PNC Capital Markets LLC, BofA Securities Inc. and Citigroup Global Markets Inc. are the joint bookrunners.

SunTrust Robinson Humphrey Inc., Capital One Securities Inc., Credit Agricole CIB, Iberia, CIBC World Markets Corp. and Scotia Capital (USA) Inc. are the senior co-managers.

Raymond James & Associates Inc., Citizens Capital Markets Inc., Fifth Third Securities Inc. and SG CIB are the co-managers.

The Rule 144A and Regulation S for life notes become callable after two years at par plus 50% of the coupon.

The Midland, Tex.-based oil and gas exploration and production company plans to use the proceeds to pay off its revolving credit facility and for general corporate purposes.

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