New Issue: W&T Offshore prices $600 million eight-year notes at par to yield 8½%

By Paul A. Harris

Portland, Ore., June 3 - W&T Offshore, Inc. priced a $600 million issue of eight-year senior notes (Caa1/B) at par to yield 8½% on Friday, according to an informed source.

The yield printed at the wide end of the 8¼% to 8½% yield talk.

Morgan Stanley & Co., Inc. ran the books.

The Houston-based oil and natural gas company plans to use the proceeds to fund a cash tender offer for its 8¼% senior notes due 2014 and to redeem or repurchase the notes not tendered. Remaining proceeds will be used to repay debt under the company's revolving credit facility and to fund a portion of its recent acquisition in the West Texas Permian Basin.

Issuer:	W&T Offshore, Inc.
Amount:	$600 million
Maturity:	June 15, 2019
Securities:	Senior notes
Bookrunner:	Morgan Stanley & Co., Inc.
Co-managers:	BNP Paribas Securities Corp., TD Securities (USA) LLC, Lloyds Securities Inc., Natixis Securities North America Inc., Scotia Capital (USA) Inc., ING Financial Markets LLC, Iberia Capital Partners, LLC, Global Hunter Securities, LLC
Coupon:	8½%
Price:	Par
Yield:	8½%
Spread:	600 bps
Call protection:	Make-whole call at Treasuries plus 50 bps until June 15, 2015, then callable at 104.25, 102.125, par on and after June 15, 2017
Equity clawback:	For 35% at 108.50 until June 15, 2014
Change of control put:	101%
Trade date:	June 3
Settlement date:	June 10
Ratings:	Moody's: Caa1
	Standard & Poor's: B
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	8¼% to 8½%
Marketing:	Roadshow

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