Published on 4/16/2014 in the Prospect News High Yield Daily.
New Issue: Endeavor Energy prices upsized $250 million tap of 7% notes due 2021 at 104.75
By Paul A. Harris
Portland, Ore., April 16 - Endeavor Energy Resources, LP and EER Finance, Inc. priced an upsized $250 million tack-on to their 7% senior notes due Aug. 15, 2021 (B3/B/) at 104.75 to yield 5.942% on Wednesday, according to a syndicate source.
The deal was upsized from $100 million.
The reoffer price came at the rich end of the 104.5 to 104.75 price talk.
Wells Fargo Securities LLC, Credit Agricole Securities (USA) Inc., Mitsubishi UFJ Securities (USA) Inc. and U.S. Bancorp Investments Inc. were the joint bookrunners.
Proceeds will be used to repay the company's revolver, to fund development of acreage and for general corporate purposes.
The issuer is a Midland, Texas-based oil and gas exploration and production company.
| Issuer: | Endeavor Energy Resources, LP and EER Finance, Inc.
|
| Face amount: | $250 million, increased from $100 million
|
| Proceeds: | $262 million
|
| Maturity: | Aug. 15, 2021
|
| Security description: | Tack-on to 7% senior notes due 2021
|
| Bookrunners: | Wells Fargo Securities LLC, Credit Agricole Securities (USA) Inc., Mitsubishi UFJ Securities (USA) Inc., U.S. Bancorp Investments Inc.
|
| Co-managers: | Regions Securities LLC., BB&T Capital Markets, a division of BB&T Securities, LLC, BMO Capital Markets Corp., CIBC World Markets Corp., Citigroup Global Markets Inc., Comerica Securities, Inc., Natixis Securities Americas LLC, RBS Securities Inc., Santander Investment Securities Inc., Scotia Capital (USA) Inc.
|
| Coupon: | 7%
|
| Price: | 104.75
|
| Yield to worst: | 5.942%
|
| Spread: | 421 bps
|
| Price talk: | 104.5 to 104.75
|
| First call: | Aug. 15, 2016 at 105.25
|
| Equity clawback: | 35% at 107 until Aug. 15, 2016
|
| Trade date: | April 16
|
| Settlement date: | April 22 with accrued interest
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
| Original issue: | $250 million priced at par in August 2013
|
| Fungibility: | Add-on notes will be immediately fungible with the original notes
|
| Total issue size: | $500 million
|
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