Published on 5/19/2015 in the Prospect News High Yield Daily.
New Issue: EP Energy prices $800 million eight-year notes at par to yield 6 3/8%
By Paul A. Harris
Portland, Ore., May 19 – EP Energy LLC and Everest Acquisition Finance Inc. priced an $800 million issue of eight-year senior notes (B1/B) at par to yield 6 3/8% on Tuesday, according to a syndicate source.
The yield printed at the tight end of yield talk in the 6½% area.
RBC Capital Markets LLC was the left bookrunner. Citigroup Global Markets Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC were the joint bookrunners.
The Houston-based independent oil and natural gas exploration and production company plans to use the proceeds to fund the repurchase or redemption of its 6 7/8% senior secured notes due 2019 and for general corporate purposes.
| Issuers: | EP Energy LLC and Everest Acquisition Finance Inc.
|
| Amount: | $800 million
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| Maturity: | June 15, 2023
|
| Securities: | Senior notes
|
| Left bookrunner: | RBC Capital Markets LLC
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| Joint bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC
|
| Senior co-managers: | BMO Capital Markets Corp., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., UBS Securities LLC
|
| Co-managers: | Apollo Global Securities LLC, Riverstone Capital Services LLC, Capital One Securities Inc., CIBC World Markets Corp., BBVA Securities Inc., SG Americas Securities LLC, Scotia Capital (USA) Inc., SunTrust Robinson Humphrey Inc., TD Securities (USA) LLC, MUFG, SMBC Nikko Securities America Inc., DNB Markets Inc., ING Financial Markets LLC, Mizuho Securities USA Inc., RBS Securities Inc., Morgan Stanley & Co. LLC, Comerica Securities Inc., Nomura Securities International Inc.
|
| Coupon: | 6 3/8%
|
| Price: | Par
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| Yield: | 6 3/8%
|
| Spread: | 424 bps
|
| First call: | June 15, 2018 at 104.781
|
| Equity clawback: | 35% at 106.375 until June 15, 2018
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| Trade date: | May 19
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| Settlement date: | May 28
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| Ratings: | Moody's: B1
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 6½% area
|
| Marketing: | Quick to market
|
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