Hilcorp Energy to sell $1 billion two-part notes offering on Thursday

By Paul A. Harris

Portland, Ore., Jan. 7 – Hilcorp Energy I, LP and Hilcorp Finance Co. plan to price $1 billion of senior notes in two tranches on Thursday following a mid-morning conference call with investors, according to market sources.

The Rule 144Aand Regulation S for life deal includes $500 million of eight-year notes, callable after three years at par plus 50% of the coupon, with initial guidance of 6¼% to 6½%.

The offering also includes $500 million of 10-year notes, callable after five years at par plus 50% of the coupon, talked to come 25 basis points behind the eight-year notes.

BofA Securities Inc. is the left bookrunner. J.P. Morgan Securities LLC, RBC Capital Markets LLC, BBVA Securities Inc., Fifth Third Securities Inc., Mizuho Securities USA Inc., SMBC Nikko Securities America Inc., Truist Securities Inc. and U.S. Bancorp Investments Inc. are the joint bookrunners.

Capital One Securities Inc., Comerica Securities Inc., CIBC World Markets Corp. and DNB are the co-managers.

The Houston-based oil and gas exploration and production company plans to use the proceeds to fund a tender offer for its 5% senior notes due 2024 and 5¾% senior notes due 2025 and to pay down Hilcorp Energy I's senior secured credit facility or otherwise repurchase or redeem existing debt.

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