EP Energy to price $1 billion eight-year secured notes on Friday

By Paul A. Harris

Portland, Ore., May 17 – EP Energy Corp. plans to price $1 billion of eight-year 1.125 lien senior secured notes (expected ratings B1/B) on Friday afternoon, according to market sources.

Credit Suisse Securities (USA) LLC is the lead left bookrunner for the Rule 144A and Regulation S for life offering, which was scheduled to be marketed by means of a Thursday afternoon conference call with investors. Citigroup Global Markets Inc., J.P. Morgan Securities LLC, RBC Capital Markets LLC, BMO Securities, Deutsche Bank Securities Inc., TD Securities (USA) LLC and Goldman Sachs & Co. are the joint bookrunners.

DNB Markets and Sumitomo are the co-managers.

The notes become callable after three years at par plus 75% of the coupon and feature a three-year 40% equity clawback and a 101% poison put.

The Houston-based oil and natural gas exploration and production company plans to use the proceeds to repay revolver debt and put cash on its balance sheet.

The issuing entities will be EP Energy LLC, a wholly owned subsidiary of EP Energy Corp., and Everest Acquisition Finance Inc., a wholly owned subsidiary of EP Energy LLC.

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