Published on 8/6/2013 in the Prospect News High Yield Daily.
New Issue: Endeavor Energy prices downsized $250 million eight-year notes to yield 7%
By Paul Deckelman
New York, Aug. 6 - Endeavor Energy Resources, LP and EER Finance, Inc. were heard by high-yield syndicate sources to have priced a $250 million offering of 7% eight-year senior notes (B3/B+/) on Tuesday.
The issue was downsized from the originally planned $300 million and priced outside of pre-deal market price talk envisioning a yield in the 6½% to 6¾% range.
The Rule 144A and Regulation S for life notes came to market via joint bookrunning managers Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, Credit Agricole Securities (USA) Inc., Mitsubishi UFJ Securities, U.S. Bancorp Investments Inc. and RBS Securities Inc. following a roadshow for potential investors last week.
The notes will be non-callable for the first three years after issue, other than via a make-whole call at Treasuries plus 50 bps, then initially become callable at ¾ of the coupon.
The notes also have standard 35% equity clawback and 101% change-of-control put provisions.
The Midland, Texas-based oil and gas exploration and production company plans to use the new-deal proceeds to repay existing debt and for general corporate purposes.
| Issuers: | Endeavor Energy Resources, LP and EER Finance, Inc.
|
| Amount: | $250 million, downsized from original $300 million
|
| Description: | Senior notes
|
| Maturity: | Aug. 15, 2021
|
| Joint bookrunners | Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, Credit Agricole Securities (USA) Inc., Mitsubishi UFJ Securities, U.S. Bancorp Investments Inc., RBS Securities Inc.
|
| Co-managers: | Regions Capital Markets, BB&T Capital Markets, BMO Capital Markets Corp., CIBC World Markets Corp., Citibank Global Markets Inc., Comerica Securities Inc., Natixis Securities Americas LLC, Santander Investment Securities Inc., Scotia Capital (USA) Inc.
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Spread: | 471 bps over 2 1/8% U.S. Treasury due Aug. 15, 2021
|
| Call protection: | Non-callable for three years, then at 105.25 on or after Aug. 15, 2016, at 103.5 on or after Aug. 15, 2017, at 101.75 on or after Aug. 15, 2018 and finally at par beginning Aug. 15, 2019
|
| Make-whole call: | Treasuries plus 50 bps
|
| Equity clawback: | For up to 35% of issue at 107 prior to Aug. 15, 2016
|
| Change-of-control put: | At 101%
|
| Trade date: | Aug. 6
|
| Settlement date: | Aug. 9 (T+3)
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6½% to 6¾% yield
|
| Marketing: | Roadshow
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
