QR Energy to price $300 million eight-year notes on Wednesday

By Paul A. Harris

Portland, Ore., July 23 - After holding a roadshow for its deal in early May and subsequently pulling back from the market, QR Energy, LP and QRE Finance Corp. resumed marketing that deal once again on Monday, according to a syndicate source.

An investor call was held on Monday for the $300 million offering of eight-year senior notes (Caa1/B-), which are set to price on Wednesday.

Citigroup Global Markets Inc. is the left bookrunner. Barclays Capital Inc., Credit Agricole CIB, RBC Capital Markets, RBS Securities Inc. and Wells Fargo Securities LLC are the joint bookrunners.

Bank of America Merrill Lynch, BMO Securities, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Scotia Capital, BBVA, Capital One, Comerica Securities, TD Securities, Mitsubishi UFJ Securities and US Bancorp are the co-managers.

The Rule 144A and Regulation S with registration rights notes come with four years of call protection and feature a 101% poison put.

The notes come with the usual and customary incurrence-based high-yield covenants, with standard modifications reflective of a master limited partnership structure.

The Houston-based MLP plans to use the proceeds to repay debt under its revolver.

QR Energy is focused on the exploitation of onshore oil and gas fields.

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