EP Energy talks $600 million eight-year notes to yield in 8% area; pricing Wednesday

By Paul A. Harris

Portland, Ore., Feb. 1 – EP Energy LLC talked its $600 million offering of eight-year 1.5-lien senior secured notes (Caa1/B-) to yield in the 8% area, according to an informed source.

Books close at 1 p.m. ET on Wednesday, and the Rule 144A and Regulation S for life deal is set to price thereafter.

Credit Suisse Securities (USA) LLC is the bookrunner.

The notes become callable after three years at par plus 75% of the coupon and feature a three-year 35% equity clawback and a 101% poison put.

The Houston-based oil and natural gas exploration and production company plans to use the proceeds to refinance its 1.5-lien term loan.

EP Energy is primarily focused on the Eagle Ford, Permian and Uinta basins.

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