New Issue: Hilcorp Energy upsizes to $175 million, 10-year notes price at par to yield 7¾%

By Paul A. Harris

St. Louis, Oct. 14 - Hilcorp Energy Co., issuing in conjunction with Hilcorp Finance Co., priced an upsized $175 million issue of 10-year senior notes (expected ratings B3/B) at par to yield 7¾%, according to a market source.

The yield came on top of the 7¾% price talk. The issue size was increased by $25 million from $150 million.

Deutsche Bank Securities ran the books for the quick-to-market Rule 144A issue.

Proceeds will be used to fund the tender for $125 million of the company's 10½% senior notes due 2010 and for general corporate purposes.

The issuer is a Houston-based oil and gas exploration and production company.

Issuer:	Hilcorp Energy Co./Hilcorp Finance Co.
Amount:	$175 million (increased from $150 million)
Maturity:	Nov. 1, 2015
Security description:	Senior notes
Bookrunner:	Deutsche Bank Securities
Co-managers:	JP Morgan, Wachovia Securities
Coupon:	7¾%
Price:	Par
Yield:	7¾%
Spread:	326 basis points
Call features:	Callable after Nov. 1, 2010 at 103.875, 102.583, 101.292, then par on and after Nov. 1, 2013
Trade date:	Oct. 14
Settlement date:	Oct. 27
Expected ratings:	Moody's: B3
	Standard & Poor's: B
Price talk:	7¾% area

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