Published on 11/28/2017 in the Prospect News High Yield Daily.
New Issue: Endeavor Energy prices upsized $1 billion senior notes in two parts
By Paul A. Harris
Portland, Ore., Nov. 28 – Endeavor Energy Resources, LP and EER Finance, Inc. priced an upsized $1 billion amount of senior notes (B3/BB-) in two tranches on Tuesday, according to a syndicate source.
The deal included $500 million of eight-year notes, which priced at par to yield 5½%. The yield printed at the tight end of yield talk in the 5 5/8% area.
In addition the company priced an upsized $500 million amount of 10-year notes at par to yield 5¾%. The tranche size increased from $300 million. The yield printed at the tight end of the 5¾% to 5 7/8% yield talk.
The overall amount of issuance was increased from $800 million.
Goldman Sachs & Co. was the left bookrunner. Credit Suisse Securities (USA) LLC is a physical bookrunner. BMO Securities, Citigroup Global Markets Inc., BofA Merrill Lynch, MUFG, PNC Capital Markets and Wells Fargo Securities LLC were joint bookrunners.
The Midland, Texas-based oil and gas exploration and production company plans to use the proceeds plus cash on-hand to refinance its notes maturing in 2021 and for general purposes.
| Issuers: | Endeavor Energy Resources, LP and EER Finance, Inc.
|
| Amount: | $1 billion, increased from $800 million
|
| Securities: | Senior notes
|
| Left bookrunner: | Goldman Sachs & Co.
|
| Physical bookrunner: | Credit Suisse Securities (USA) LLC
|
| Joint bookrunners: | BMO Securities Inc., Citigroup Global Markets Inc., BofA Merrill Lynch, MUFG, PNC Capital Markets, Wells Fargo Securities LLC
|
| Co-managers: | BB&T, CIBC, Credit Agricole, Natixis, Regions, Scotia
|
| Trade date: | Nov. 28
|
| Settlement date: | Dec. 7
|
| Ratings: | Moody's: B3
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Quick to market
|
|
|
| Eight-year notes
|
| Amount: | $500 million
|
| Maturity: | Jan. 30, 2026
|
| Coupon: | 5½%
|
| Price: | Par
|
| Yield: | 5½%
|
| Spread: | 320 bps
|
| Call protection: | Three years
|
| Price talk: | 5 5/8% area
|
|
|
| 10-year notes
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| Amount: | $500 million, increased from $300 million
|
| Maturity: | Jan. 30, 2028
|
| Coupon: | 5¾%
|
| Price: | Par
|
| Yield: | 5¾%
|
| Spread: | 341 bps
|
| Call protection: | Five years
|
| Price talk: | 5¾% to 5 7/8%
|
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