By Paul A. Harris
Portland, Ore., March 30 – Exterran Energy Solutions, LP and EES Finance Corp., wholly owned subsidiaries of Exterran Corp., priced an upsized $375 million issue of eight-year senior notes (B3/B+) at par to yield 8 1/8% on Thursday, according to a syndicate source.
The issue size was increased from $300 million.
The yield printed in the middle of the 8% to 8¼% yield talk.
Wells Fargo Securities LLC was the left bookrunner. Credit Agricole CIB, BofA Merrill Lynch, Citigroup Global Markets Inc. and RBC Capital Markets LLC were the joint bookrunners.
The Houston-based company plan to use the proceeds to repay term loan debt, to pay down its revolving credit facility and for general corporate purposes.
Exterran provides compression, production and processing products to the oil and natural gas industry.
| Issuer: | Exterran Energy Solutions, LP
|
| Amount: | $375 million, increased from $300 million
|
| Maturity: | May 1, 2025
|
| Securities: | Senior notes
|
| Left bookrunner: | Wells Fargo Securities LLC
|
| Joint bookrunners: | Credit Agricole CIB, BofA Merrill Lynch, Citigroup Global Markets Inc., RBC Capital Markets
|
| Senior co-managers: | Scotia, SMBC, Goldman Sachs & Co.
|
| Co-managers: | HSBC Securities (USA) LLC, Santander, BB&T
|
| Coupon: | 8 1/8%
|
| Price: | Par
|
| Yield: | 8 1/8%
|
| Spread: | 578 bps
|
| Call protection: | Three years
|
| Trade date: | March 30
|
| Settlement date: | April 4
|
| Ratings: | Moody's: B3
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 8% to 8¼%
|
| Marketing: | Roadshow
|
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