EPL Oil & Gas talks $250 million tap of 8¼% notes due 2018 at 99 to yield 8.483%

By Paul A. Harris

Portland, Ore., Oct. 17 - EPL Oil & Gas, Inc. talked a $250 million tack-on to its 8¼% senior notes due 2018 (current ratings Caa1/B-) to price at 99, implying an 8.483% yield to worst, an informed source said on Wednesday.

The books close at 10 a.m. ET Thursday, and the deal is set to price thereafter.

Credit Suisse Securities (USA) LLC, BMO Securities and Jefferies & Co. are the joint bookrunners.

The Rule 144A and Regulation S with registration rights notes become callable on Feb. 15, 2015 at 104.125. The notes have a 35% equity clawback at 108.25 until Feb. 15, 2014.

Upon release from escrow, the proceeds will be used to finance the acquisition of 100% of the issued and outstanding member interests of Hilcorp Energy GOM, LLC, which owns certain shallow-water Gulf of Mexico shelf oil and natural gas interests.

EPL Oil and Gas is a Houston-based exploration and production company.

The original $210 million issue priced at par in February 2011 via Energy Partners Ltd.

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