Westport Resources starts roadshow mid-week for $300 million add-on

By Paul A. Harris

St. Louis, Dec. 2 - Westport Resources Corp. will start roadshowing a $300 million add-on to its 8¼% senior subordinated notes due Nov. 1, 2011 (existing ratings Ba3/B+) mid-week during the week of Dec. 2, according to market sources.

The deal is expected to price during the week of Dec. 9.

Credit Suisse First Boston, JP Morgan and Lehman Brothers are joint bookrunners. Fleet Securities and Wachovia Securities, Inc. are co-managers.

The original Rule 144A offering of $275 million priced on Oct. 31, 2001 at par to yield 8¼%. The notes become callable on Nov. 1, 2006 at 104.125, with the call declining to 102.75 on Nov. 1, 2007, 101.375 on Nov. 1, 2008, and to par on Nov. 1, 2009 and thereafter. The notes also contain an equity clawback until Nov. 1, 2004 for 35% at 108.25.

Proceeds will be used to finance, in part, the recently announced acquisition of natural gas properties and midstream gathering and compression assets in Utah for a purchase price of approximately $502 million, to repay a portion of its revolver, and for general corporate purposes.

The issuer is an independent energy company engaged in oil and natural gas exploitation, acquisition and exploration activities primarily in the Gulf of Mexico, the Rocky Mountains, Permian Basin/Mid-Continent and the Gulf Coast. The company is headquartered in Denver.

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