Published on 10/18/2012 in the Prospect News High Yield Daily.
New Issue: EPL Oil & Gas sells upsized tap of 8¼% senior notes due 2018 at 99 to yield 8.483%
By Paul A. Harris
Portland, Ore., Oct. 18 - EPL Oil & Gas, Inc. priced an upsized $300 million tack-on to its 8¼% senior notes due Feb. 15, 2018 (Caa1/B-/) at 99, with an 8.483% yield to worst, on Thursday, according to a syndicate source.
The reoffer price and yield to worst came on top of price talk.
Credit Suisse Securities (USA) LLC and BMO Capital Markets Corp. were the joint physical bookrunners for the deal, which was upsized from $250 million. Jefferies & Co. was the joint bookrunner.
Upon release from escrow, 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.
Additional proceeds will be used to reduce the company's draw on its revolver.
EPL Oil & Gas is a Houston-based exploration and production company.
| Issuer: | EPL Oil & Gas, Inc.
|
| Face amount: | $300 million, increased from $250 million
|
| Proceeds: | $297 million
|
| Maturity: | Feb. 15, 2018
|
| Security description: | Tack-on to 8¼% senior notes due Feb. 15, 2018
|
| Joint physical bookrunners: | Credit Suisse Securities (USA) LLC, BMO Capital Markets Corp.
|
| Joint bookrunner: | Jefferies & Co. Inc.
|
| Co-managers: | Capital One Southcoast Inc., Credit Agricole Securities (USA) Inc., Natixis Securities Americas LLC, Scotia Capital (USA) Inc., KeyBanc Capital Markets Inc., ING Financial Markets LLC, Iberia Capital Partners LLC, Johnson Rice & Co. LLC, Global Hunter Securities LLC, Dahlman Rose & Co. LLC, Burnham Securities Inc., Brean Capital, LLC
|
| Coupon: | 8¼%
|
| Price: | 99
|
| Yield to worst: | 8.483%
|
| Spread: | 763 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Feb. 15, 2015, then callable at 104.125, 102.063, par on and after Feb. 15, 2017
|
| Equity clawback: | 35% at 108.25 until Feb. 15, 2014
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| Change-of-control put: | 101%
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| Trade date: | Oct. 18
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| Settlement date: | Oct. 25 with accrued interest
|
| Ratings: | Moody's: Caa1
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| Standard & Poor's: B-
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| Distribution: | Rule 144A and Regulation S with registration rights
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| Price talk: | 99, implying an 8.483% yield to worst
|
| Marketing: | Roadshow
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| Original issue: | $210 million issue (via Energy Partners Ltd.) priced at par in February 2011
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| Total issue size: | $510 million
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