Published on 4/6/2015 in the Prospect News High Yield Daily.
New Issue: Endeavor Energy sells $300 million 8½-year notes at par to yield 8 1/8%
By Paul A. Harris
Portland, Ore., April 6 – Endeavor Energy Resources, LP and EER Finance, Inc. priced a $300 million issue of senior notes due Sept. 15, 2023 (B3/B) at par to yield 8 1/8% on Monday, according to a syndicate source.
The yield printed at the tight end of yield talk in the 8¼% area.
Credit Suisse Securities (USA) LLC and BofA Merrill Lynch were the joint physical bookrunners.
Wells Fargo Securities, LLC, Credit Agricole Securities (USA) Inc., MUFG, BMO Capital Markets Corp. and U.S. Bancorp Investments, Inc. were the joint bookrunners.
The Midland, Texas-based company plans to use the proceeds to refinance a portion of its outstanding ABL borrowings.
Endeavor Energy Resources is an oil and gas exploration and production company primarily focused in the Permian Basin.
| Issuers: | Endeavor Energy Resources, LP and EER Finance, Inc.
|
| Amount: | $300 million
|
| Maturity: | Sept. 15, 2023
|
| Securities: | Senior notes
|
| Joint physical bookrunners: | Credit Suisse Securities (USA) LLC, BofA Merrill Lynch
|
| Joint bookrunners: | Wells Fargo Securities, LLC, Credit Agricole Securities (USA) Inc., MUFG, BMO Capital Markets Corp., U.S. Bancorp Investments, Inc.
|
| Co-managers: | BB&T Capital Markets, CIBC World Markets Corp., Citigroup Global Markets Inc., Comerica Securities Inc., KeyBanc Capital Markets Inc., Natixis Securities Americas LLC, PNC Capital Markets LLC, Regions Securities LLC, Santander Investment Securities Inc., Scotia Capital (USA) Inc.
|
| Coupon: | 8 1/8%
|
| Price: | Par
|
| Yield: | 8 1/8%
|
| Spread: | 634 bps
|
| First call: | March 15, 2018 at 106.094
|
| Trade date: | April 6
|
| Settlement date: | April 9
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8¼% area
|
| Marketing: | Quick to market
|
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