Published on 6/2/2020 in the Prospect News High Yield Daily.
New Issue: Endeavor Energy sells upsized $600 million 6 5/8% five-year notes at par to yield 6.622%
By Paul A. Harris
Portland, Ore., June 2 – Endeavor Energy Resources LP and EER Finance Inc. priced an upsized $600 million issue of 6 5/8% five-year senior notes (B1/BB-/BB+) at par to yield 6.622% in a Tuesday drive-by, according to market sources.
Goldman Sachs & Co. LLC was the left physical bookrunner. Joint physical bookrunners were BMO Capital Markets Corp. and J.P. Morgan Securities LLC.
Joint bookrunners were MUFG, PNC Capital Markets LLC, BofA Securities Inc. and Citigroup Global Markets Inc.
The issue size increased from $500 million.
The yield printed 12.8 basis points through the 6¾% to 7% yield talk. Initial guidance was in the low 7% area.
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.
| Issuers: | Endeavor Energy Resources, LP and EER Finance, Inc.
|
| Amount: | $600 million, increased from $500 million
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| Maturity: | July 15, 2025
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| Securities: | Senior notes
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| Left physical bookrunner: | Goldman Sachs & Co. LLC
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| Joint physical bookrunners: | BMO Capital Markets Corp. and J.P. Morgan Securities LLC
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| Joint bookrunners: | MUFG, PNC Capital Markets LLC, BofA Securities Inc. and Citigroup Global Markets Inc.
|
| Senior co-managers: | SunTrust Robinson Humphrey Inc., Capital One Securities Inc., Credit Agricole CIB, Iberia, CIBC World Markets Corp. and Scotia Capital (USA) Inc.
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| Co-managers: | Raymond James & Associates Inc., Citizens Capital Markets Inc., Fifth Third Securities Inc. and SG CIB
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| Coupon: | 6 5/8%
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| Price: | Par
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| Yield: | 6.622%
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| Spread: | 627.6 bps
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| First call: | July 15, 2022 at 103.313
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| Trade date: | June 2
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| Settlement date: | June 5
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| Ratings: | Moody's: B1
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| S&P: BB+
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| Fitch: BB-
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 6¾% to 7%
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| Marketing: | Drive-by
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