New Issue: XTO Energy upsized $400 million 10-year notes yield 6¼%

By Paul A. Harris

St. Louis, April 17 - XTO Energy, Inc. priced an upsized offering of $400 million senior notes due April 15, 2013 (Ba2/BB) at par Thursday to yield 6¼%, according to a syndicate source.

Price talk was for a yield in the 6 3/8% area. The deal was originally sized at $300 million but increased to $400 million on Tuesday.

Lehman Brothers and JP Morgan were joint bookrunners. The co-managers were Citigroup, Goldman Sachs, ABN Amro, BNP Paribas, Banc One Capital Markets, Wachovia Securities, Inc., BNY Securities, BMO Nesbitt Burns and Scotia Capital

Proceeds from the Rule 144A deal will be used to fund a portion of its acquisition of assets in Kansas, New Mexico and Colorado from Williams Cos. and redeem most of its 8¾% senior subordinated notes.

The issuer is a Fort Worth, Texas-based natural gas producer.

Issuer:	XTO Energy, Inc.
Amount:	$400 million (increased from $300 million)
Maturity:	April 15, 2013
Security description:	Senior notes
Bookrunners:	Lehman Brothers, JP Morgan (joint)
Co-managers:	Citigroup, Goldman Sachs, ABN Amro, BNP Paribas, Banc One Capital Markets, Wachovia Securities, BNY, BMO Nesbitt Burns, Scotia Capital
Coupon:	6¼%
Price:	Par
Yield:	6¼%
Spread:	233 basis points
Call features:	Treasuries + 50 basis points make-whole call
Settlement date:	April 23, 2003
Ratings:	Moody's: Ba2
	Standard & Poor's: BB
Rule 144A Cusip:	98385XAB2
Price talk:	6 3/8% area

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