EP Energy upsizes to $500 million, talks seven-year secured notes to yield 8%-8¼%

By Paul A. Harris

Portland, Ore., Nov. 16 – EP Energy LLC upsized its offering of seven-year senior secured notes (B3) to $500 million from $350 million, according to market sources.

The notes are talked to yield 8% to 8¼%, on top of initial guidance.

Books close at 10:30 a.m. ET on Thursday, and the Rule 144A for life and Regulation S deal is set to price thereafter.

Goldman Sachs & Co. is the left bookrunner. Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and RBC Capital Markets are the joint bookrunners.

BMO Capital Markets Corp., Deutsche Bank Securities Inc. and UBS Investment Bank are the senior co-managers.

Apollo Global Securities, Riverstone Capital Services, Capital One Securities, CIBC Capital Markets, BBVA, SMBC Nikko, Mizuho Securities, SG CIB, DNB Markets, Morgan Stanley & Co. LLC, SunTrust Robinson Humphrey Inc., Citizens Capital Markets Inc., Comerica Securities, TD Securities, ING and Nomura are the co-managers.

The notes come with three years of call protection.

The Houston-based oil and natural gas exploration and production company plans to use the proceeds to repay the RBL facility and/or for other general corporate purposes.

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