By Paul A. Harris
Portland, Ore., Aug. 13 – American Eagle Energy Corp. priced a $175 million issue of 11% five-year senior secured notes (Caa1/CCC) at 99.059 to yield 11¼% on Wednesday, according to an informed source.
The yield printed 12.5 basis points beyond the wide end of yield talk in the 11% area.
The order book was well oversubscribed, the source added.
GMP Securities was the bookrunner.
The Denver-based independent oil and gas acquisition, exploration and development company plans to use the proceeds to repay borrowings under its existing credit facility, with any remaining proceeds for general corporate purposes.
| Issuer: | American Eagle Energy Corp.
|
| Face amount: | $175 million
|
| Proceeds: | $173 million
|
| Maturity: | Five years
|
| Securities: | Senior secured notes
|
| Bookrunner: | GMP Securities
|
| Co-managers: | Canaccord Genuity Group Inc., GHS/Seaport Group, Johnson Rice
|
| Coupon: | 11%
|
| Price: | 99.059
|
| Yield: | 11¼%
|
| Call protection: | Two years
|
| Trade date: | Aug. 13
|
| Settlement date: | Aug. 27
|
| Ratings: Moody's: Caa1
|
| Standard & Poor's: CCC
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 11% area
|
| Marketing: | Roadshow
|
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