Hilcorp Energy add-on to 7¾% notes due 2015 upsized to $300 million, talked at 98.75

By Paul A. Harris

St. Louis, Jan. 31 - Hilcorp Energy I LP has upsized to $300 million from $125 million a planned add-on to its 7¾% senior notes due Nov. 1, 2015 (expected ratings B3/B), according to market sources.

Meanwhile the Houston-based company has talked the tap at 98.75 and plans to price it early Thursday.

Deutsche Bank Securities has the books for the Rule 144A transaction.

The notes become callable on Nov. 1, 2010 at 103.875 and contain an equity clawback until Nov. 1, 2008 for 35% at 107.75.

The proceeds will be used to fund the tender for $150 million of the company's 10½% senior notes at Treasuries plus 50 basis points, with the remainder to be used for general corporate purposes.

Hilcorp Energy is a private limited partnership engaged in onshore oil and gas production, property acquisition, exploitation, and divestiture. It is 100% owned by Jeffrey Hildebrand.

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