Parallel Petroleum starts roadshow for $150 million seven-year notes

By Paul A. Harris

St. Louis, July 19 - Parallel Petroleum Corp. began a roadshow on Thursday for its $150 million offering of seven-year senior notes (Caa1/B-), according to an informed source.

The roadshow is scheduled to conclude on July 26.

Jefferies & Co. and Merrill Lynch & Co. are joint bookrunners for the Rule 144A and Regulation S offering. BNP Paribas is the co-manager.

The notes will feature a make-whole call for the first four years, after which they will become callable at fixed premiums. They will also contain a three-year 35% equity clawback and a change-of-control put at 101.

Proceeds will be used to reduce bank debt.

Midland, Texas-based Parallel Petroleum is an independent energy company engaged in the acquisition, exploration, development and production of oil and gas using three-dimensional seismic technology and advanced drilling, completion and recovery techniques.

Parallel's primary areas of operation are the Permian Basin of West Texas and New Mexico, North Texas Barnett Shale, onshore Gulf Coast of southern Texas, eastern Texas and Utah/Colorado.

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