Whiting Petroleum to price $1 billion five-year convertibles to yield 0.75%-1.25%, up 30%-35%

By Rebecca Melvin

New York, March 23 – Whiting Petroleum Corp. plans to price $1 billion five-year convertible senior notes before the market open on Tuesday that were talked to yield 0.75% to 1.25% with an initial conversion premium of 30% to 35%, according to market sources.

The Rule 144A offering has a $150 million greenshoe and was being marketed via bookrunner J.P. Morgan Securities LLC.

Whiting is also pricing $750 million of eight-year straight debt and about $1.25 billion, or 35 million shares, of common stock.

The convertibles are non-callable for life with no puts and they have dividend and takeover protection.

Proceeds from the offerings will be used to repay all or a portion of the amount outstanding under the company’s revolving credit facility and for general corporate purposes.

Denver-based Whiting Petroleum is an oil and gas exploration and production company.

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