By Paul A. Harris
St. Louis, Feb. 1 - Hilcorp Energy I LP priced an upsized $300 million add-on to 7¾% senior notes due Nov. 1, 2015 (expected ratings B3/B) at 98.75 resulting in a yield of 7.948% on Thursday, according to a market source.
The Rule 144A tap, which was upsized from $125 million, priced on top of the price talk.
Deutsche Bank Securities ran the books.
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.
The original $175 million issue priced at par in October 2005. The total issue size following Thursday's add-on is $475 million.
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.
| Issuer: | Hilcorp Energy I LP
|
| Amount: | $300 million (increased from $125 million)
|
| Maturity: | Nov. 1, 2015
|
| Security description: | Add-on to 7¾% senior notes
|
| Bookrunner: | Deutsche Bank Securities
|
| Coupon: | 7¾%
|
| Price: | 98.75
|
| Yield: | 7.948%
|
| Spread: | 312 bps
|
| 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: | Feb. 1
|
| Settlement date: | Feb. 15, with accrued interest
|
| Expected ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A
|
| Price talk: | 98.75
|
| Original issue: | $175 million issue priced at par in October 2005
|
| Total issue size: | $475 million
|
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