New Issue: Westport Resources prices $300 million add-on at 103 to yield 7.68%

By Paul A. Harris

St. Louis, Dec. 11 - Westport Resources Corp. priced a $300 million add-on to its 8¼% senior subordinated notes due Nov. 1, 2011 (Ba3/B+) at 103 Wednesday for a 7.68% yield to worst, according to a market source.

Credit Suisse First Boston, JP Morgan and Lehman Brothers were joint bookurnners. The co-managers were Fleet Securities and Wachovia Securities, Inc.

Proceeds from the Rule 144A deal will be used to help finance the acquisition of natural gas properties and midstream gathering and compression assets in Utah for $502 million, to repay part of the revolver and for general corporate purposes.

The issuer is a Denver, Colo.-based oil and gas exploration and production company.

The original $275 million deal priced on Oct. 31, 2001.

Issuer:	Westport Resources Corp.
Amount:	$300 million
Security description:	Add-on to 8¼% senior subordinated notes due Nov. 1, 2011
Managers:	Credit Suisse First Boston, JP Morgan, Lehman Brothers (joint books)
Co-managers:	Fleet Securities, Wachovia Securities
Maturity:	Nov. 1, 2011
Coupon:	8¼%
Price:	103
Yield to worst:	7.68%
Yield to maturity:	7.77%
Spread:	386 basis points over 5% Treasury due August 2011
Call features:	Callable on Nov. 1, 2006 at 104.125, then at 102.75, 101.375, declining to par on Nov. 1, 2009 and thereafter
Equity clawback:	Until Nov. 1, 2004 for 35% at 108.25
Settlement date:	Dec. 17, 2002 with accrued interest
Ratings:	Moody's: Ba3
	Standard & Poor's: B+
Rule 144A Cusip:	96148AC4

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.