New Issue: Endeavour prices $54 million tack-on to 12% first-priority notes due 2018 at 109

By Paul A. Harris

Portland, Ore., Oct. 10 - Endeavour International Corp. priced a $54 million tack-on to its 12% first-priority notes due March 1, 2018 (Caa1/CCC+/) at 109 to yield 9.436% on Wednesday, according to an informed source.

Credit Suisse Securities (USA) LLC was the bookrunner for the quick-to-market transaction.

The Houston-based oil and gas exploration and production company plans to use the proceeds to redeem, repurchase or otherwise retire its outstanding 12% senior subordinated notes due 2014 and to finance a portion of the construction, improvement and other capital costs related to its U.S. and U.K oil and natural gas properties.

Issuer:	Endeavour International Corp.
Face amount:	$54 million
Proceeds:	$58.9 million
Maturity:	March 1, 2018
Security description:	Tack-on to 12% first-priority notes due March 1, 2018
Bookrunner:	Credit Suisse Securities (USA) LLC
Coupon:	12%
Price:	109
Yield:	9.436%
Spread:	887 bps
Call protection:	Make-whole call at Treasuries plus 50 bps until March 1, 2015, then callable at 106
Equity clawback:	35% at 112 until March 1, 2015
Change-of-control put:	101%
Trade date:	Oct. 10
Settlement date:	Oct. 15 with accrued interest
Ratings:	Moody's: Caa1
	Standard & Poor's CCC+
Distribution:	Rule 144A with registration rights
Original issue:	$350 million issue priced at 96 to yield 12.975% on Feb. 13, 2012, in an overall $500 million transaction, which also included $150 million of 12% second-priority senior secured notes due June 1, 2018
Total issue size:	$404 million

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