Warren Resources talks $300 million eight-year notes at 8¼% area yield

By Paul A. Harris

Portland, Ore., July 30 – Warren Resources, Inc. talked a $300 million offering of eight-year senior notes (Caa1/B-) to yield in the 8¼% area on Wednesday, according to a syndicate source.

Books close at 5 p.m. ET on Thursday except for accounts on the West Coast of the United States, for whom they close at 11 a.m. ET on Friday.

BMO Capital Markets Corp. is the left bookrunner for the Rule 144A with registration rights offering. Jefferies LLC and Wells Fargo Securities LLC are the joint bookrunners.

Capital One, U.S. Bancorp Investments Inc., BOSC, Comerica, KeyBanc Capital Markets and Santander are the co-managers.

The notes come with three years of call protection and feature a three-year 35% equity clawback and a 101% poison put.

The New York-based independent energy company plans to use the proceeds to fund a portion of the approximately $312.5 million cash purchase price for its recently announced acquisition of the Marcellus assets of Citrus Energy Corp. and two additional working interest owners.

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