American Energy intends to sell $500 million seven-year convertible notes to yield 3%-4%

By Rebecca Melvin

New York, Feb. 4 - American Energy - Utica LLC, an affiliate of American Energy Partners LP, plans to price $500 million of seven-year convertible subordinated notes after the market close on Feb. 20. The offering was talked at a coupon of 3% to 4%, according to a market source.

The Rule 144A offering is being sold via bookrunners including Jefferies LLC and Citigroup Global Markets Inc.

Proceeds will be used, together with additional borrowings under American Energy's credit facility, to fund a portion of its additional leasehold acquisitions as approved by the board, to fund a portion of its capital expenditure plans associated with its drilling and development program, to fund drilling-carry capital expenditures agreed under certain purchase agreements and to fund a portion of its anticipated seismic data acquisitions.

Further details on the deal were not yet available to Prospect News.

Oklahoma City-based American Energy is involved in onshore U.S. unconventional resource plays.

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