By Paul A. Harris
Portland, Ore., Feb. 13 - Endeavour International Corp. priced $500 million of secured notes (Caa1/CCC/) in a restructured two-part transaction on Monday, according to an informed source.
The deal included a $350 million tranche of 12% first-priority senior secured notes due March 1, 2018, which was priced at 96 to yield 12.975%. The tranche came in line with price talk.
Meanwhile in a tranche that was not distributed Endeavor also priced $150 million of 12% second-priority senior secured notes due June 1, 2018 at 96 to yield 12.954%.
Citigroup Global Markets Inc. ran the books.
The deal initially hit the market as a single tranche of senior notes due in 2018.
In addition to the restructuring there were covenant changes.
Proceeds will be used to fund the acquisition of ConocoPhillips' interest in three producing U.K. oil fields in the Central North Sea and to retire existing term loan debt.
Endeavour is an oil and gas exploration and production company.
| Issuer: | Endeavour International Corp.
|
| Amount: | $500 million
|
| Bookrunner: | Citigroup Global Markets Inc.
|
| Lead manager: | BNP Paribas
|
| Co-managers: | FBR, Global Hunter Securities, Imperial Capital, Wunderlich
|
| Trade date: | Feb. 13
|
| Settlement date: | Feb. 17
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Marketing: | Roadshow
|
|
|
| First-priority senior notes
|
| Amount: | $350 million
|
| Maturity: | March 1, 2018
|
| Coupon: | 12%
|
| Price: | 96
|
| Yield: | 12.975%
|
| Spread: | 1,159 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps for the first three years, then callable at a premium
|
| Equity clawback: | 35% at 112% until March 1, 2015
|
| Change-of-control put: | 101%
|
| Price talk: | 12% coupon at 96 to yield 13%
|
|
|
| Second-priority senior notes (not distributed)
|
| Amount: | $150 million
|
| Maturity: | June 1, 2018
|
| Coupon: | 12%
|
| Price: | 96
|
| Yield: | 12.954%
|
| Spread: | 1,157 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps until March 1, 2015, then callable at a premium
|
| Equity clawback: | 35% at 112 until March 1, 2015
|
| Change-of-control put: | 101%
|
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