By Paul A. Harris
St. Louis, Oct. 19 - Hilcorp Energy I LP priced a $125 million add-on to its 7¾% notes due Nov. 1, 2015 (B3/B) at 98.01 to yield 8.09% on Friday, according to market sources.
Price talk was 98.00.
Deutsche Bank Securities, JP Morgan and Wachovia Securities were the bookrunners for the quick-to-market Rule 144A for life add-on. BMO Nesbitt Burns was the co-manager.
Proceeds will be used to repay debt and for general corporate purposes.
The original $175 million issue priced at par in October 2005. The company priced a previous $300 million add-on at 98.75 to yield 7.948% in February 2007.
The total issue size following Friday's transaction is $600 million.
Hilcorp Energy is a private limited partnership engaged in onshore oil and gas production, property acquisition, exploitation and divestiture.
| Issuer: | Hilcorp Energy I LP
|
| Amount: | $125 million
|
| Maturity: | Nov. 1, 2015
|
| Security description: | Add-on to 7¾% senior notes
|
| Bookrunners: | Deutsche Bank Securities, JP Morgan, Wachovia Securities
|
| Co-manager: | BMO Nesbitt Burns
|
| Coupon: | 7¾%
|
| Price: | 98.01
|
| Yield: | 8.09%
|
| Call features: | Callable Nov. 1, 2010 at 103.875, 102.583, 101.292, par on and after Nov. 1, 2013
|
| Equity clawback: | | Until Nov. 1, 2008 for 35% at 107.75
|
| Trade date: | Oct. 19
|
| Settlement date: | Oct. 29, with accrued interest
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A for life
|
| Price talk: | 98.00
|
| Original issue: | $175 million issue priced at par in October 2005
|
| Prior add-on: | $300 million priced at 98.75 to yield 7.948% in February 2007
|
| Total issue size: | $600 million
|
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