By Paul A. Harris
Portland, Ore., Feb. 1 – EP Energy LLC priced an upsized $1 billion issue of eight-year 1.5-lien senior secured notes (Caa1/B-) at par to yield 8% on Wednesday, according to an informed source.
The issue size was increased from $600 million.
The yield printed on top of yield talk in the 8% area.
Credit Suisse Securities (USA) LLC was the bookrunner.
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.
| Issuers: | EP Energy LLC and Everest Acquisition Finance Inc.
|
| Amount: | $1 billion, increased from $600 million
|
| Maturity: | Feb. 15, 2025
|
| Securities: | Senior secured 1.5-lien notes
|
| Bookrunner: | Credit Suisse Securities (USA) LLC
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Spread: | 559 bps
|
| First call: | Feb. 15, 2020 at 106
|
| Equity clawback: | 35% at 108 until Feb. 15, 2020
|
| Trade date: | Feb. 1
|
| Settlement date: | Feb. 6
|
| Ratings: | Moody's: Caa1
|
| S&P: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8% area
|
| Marketing: | Roadshow
|
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