Talos Production talks $300 million notes due 2018 to yield 9¼%-9½%, pricing Friday

By Paul A. Harris and Aleesia Forni

Columbus, Ohio, Jan. 31 - Talos Production LLC and Talos Production Finance Inc. have set yield talk for a proposed $300 million offering of senior notes due 2018 (Caa1/CCC+) at 9¼% to 9½%, according to a market source.

Books close 5 p.m. ET, except for accounts on the West Coast of the United States, and pricing is expected early Friday afternoon.

Citigroup Global Markets Inc. is the left bookrunner.

Goldman Sachs & Co., Nomura Securities Co. Ltd. and TD Securities (USA) LLC are the joint bookrunners.

Apollo, Capital One, Iberia, ING Financial Markets LLC, Mitsubishi UFJ Securities (USA) Inc. and Natixis Securities are the co-managers.

The Rule 144A and Regulation S for life notes will be non-callable for two years.

The notes feature a three-year 35% equity clawback and a 101% poison put.

Proceeds will be used to partially fund the acquisition of Energy Resource Technology GOM, Inc.

Talos is a Houston-based energy exploration and production company.

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