American Energy Partners to price seven-year convertible notes late Wednesday

By Rebecca Melvin

New York, Feb. 19 - American Energy - Utica LLC, an affiliate of American Energy Partners LP, planned to price $500 million of seven-year convertible subordinated notes after the market close Wednesday, which was a day ahead of the originally talked timetable, a syndicate source said.

The deal was initially talked at a coupon of 3% to 4%. But no updated talk was available on Wednesday, the syndicate source said.

As previously reported, the Rule 144A offering was 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.

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

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