EP Energy selling $350 million five-year PIK toggle notes Tuesday

By Paul A. Harris and Aleesia Forni

Columbus, Ohio, Dec. 18 - EPE Holdings LLC and EP Energy Bond Co. Inc. plan to price a $350 million issue of five-year senior PIK toggle notes (expected ratings B3/B) on Tuesday, a market source said.

Citigroup Global Markets Inc. is the left bookrunner.

Deutsche Bank Securities Inc., RBC Capital Markets LLC, Nomura Securities Co., Ltd., Morgan Stanley & Co. LLC, BMO Capital Markets Corp., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. and J.P. Morgan Securities LLC are the joint bookrunners.

The Rule 144A and Regulation S for life notes carry a make-whole call at Treasuries plus 50 bps for one year and will then be callable at 102.

The notes also carry a 100% equity clawback within the first year at 102 and a 101% poison put.

The Houston-based oil and natural gas exploration and production company plans to use proceeds to make a return of capital to its equity holders.

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