New Issue: W&T Offshore prices $450 million seven-year senior notes at par to yield 8¼%

By Paul A. Harris

St. Louis, June 8 - W&T Offshore, Inc. priced a $450 million issue of seven-year senior notes (B3/B-) at par to yield 8¼% on Friday, according to an informed source.

The yield was printed 25 basis points beyond the high end of the 7¾% to 8% price talk.

Morgan Stanley ran the books for the Rule 144A for life and Regulation S offer.

Goldman Sachs & Co., Lehman Brothers, Merrill Lynch & Co., BNP Paribas, Fortis Securities, BMO Nesbitt Burns, Natixis, RBC Capital Markets, SunTrust Robinson Humphrey and TD Securities were co-managers.

Proceeds will be used to reduce bank debt.

The issuer is a Houston-based independent oil and natural gas company focused primarily in the Gulf of Mexico, including exploration in the deepwater and deep shelf regions.

Issuer:	W&T Offshore, Inc.
Amount:	$450 million
Maturity:	June 15, 2014
Security description:	Senior notes
Bookrunner:	Morgan Stanley
Co-managers:	Goldman Sachs & Co., Lehman Brothers, Merrill Lynch & Co., BNP Paribas, Fortis Securities, BMO Nesbitt Burns, Natixis, RBC Capital Markets, SunTrust Robinson Humphrey, TD Securities
Coupon:	8¼%
Price:	Par
Yield:	8¼%
Spread:	317 bps
Call features:	Callable on June 15, 2011 at 104.125, 102.063, par on and after June 15, 2013
Equity clawback:	Until June 15, 2010 for 35% at 108.25
Trade date:	June 8
Settlement date:	June 13
Ratings:	Moody's: B3
	Standard & Poor's: B-
Distribution:	Rule 144A/Regulation S for life
Price talk:	7¾% to 8%

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