Hilcorp Energy driving by with $500 million 10-year senior notes; initial talk 8¾% area

By Paul A. Harris

Portland, Ore., Nov. 3 – Hilcorp plans to price a $500 million offering of Hilcorp Energy I, LP and Hilcorp Finance Co. senior secured notes due November 2033 (expected ratings Ba2/BB+) in a Friday drive-by trailing a conference call with investors, according to market sources.

Initial guidance has the deal coming to yield in the 8¾% area.

The Rule 144A and Regulation S for life 10-year notes become subject to a first call in five years at par plus 50% of the coupon.

Left bookrunner RBC Capital Markets LLC will bill and deliver. J.P. Morgan Securities LLC is the joint active bookrunner.

Mizuho Securities USA Inc., PNC Capital Markets LLC, SMBC Nikko Securities America Inc., Truist Securities Inc., U.S. Bancorp Investments Inc. and Capital One Securities Inc. are the joint bookrunners.

Comerica Securities Inc., Amegy and First Horizon are the co-managers.

The Houston-based privately owned oil and natural gas producer plans to use the proceeds to repay a portion of its reserve-based lending borrowings and for general partnership purposes.

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