EP Energy to redeem 8 1/8%/8 7/8% senior toggle notes via new stock

By Tali Rackner

Minneapolis, Jan. 21 - EP Energy Corp. plans to use the proceeds from a common stock offering to redeem all of the outstanding 8 1/8%/8 7/8% senior PIK toggle notes due 2017 issued by subsidiaries EPE Holdings LLC and EP Energy Bondco Inc., according to a 424B4 filed with the Securities and Exchange Commission.

Proceeds will also be used to pay the redemption premium and the accrued interest on the notes, to repay outstanding borrowings under the reserve-based revolving credit facility and to pay a fee of roughly $83 million under the amended and restated management fee agreement with certain affiliates of the company's sponsors.

EP Energy is a Houston-based oil and natural gas exploration and production company.

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