Published on 4/23/2021 in the Prospect News High Yield Daily.
New Issue: Encino Acquisition Partners prices $700 million seven-year notes at par to yield 8½%
By Paul A. Harris
Portland, Ore., April 23 – Encino Acquisition Partners Holdings, LLC priced a $700 million issue of seven-year senior notes (B3/B/B) at par to yield 8½% on Friday, according to market sources.
The yield printed in the middle of yield talk in the 8½% area, but at the wide end of initial guidance in the low-to-mid 8% area.
Citigroup Global Markets Inc. was the active bookrunner.
The Houston-based private oil and gas exploration and production company plans to use the proceeds to refinance its second-lien term loan, with the remainder to repay the outstanding balance on its RBL facility.
Encino Acquisition Partners was formed in 2017 when Encino Energy and the Canada Pension Plan Investment Board formed an oil and gas acquisition partnership.
| Issuer: | Encino Acquisition Partners Holdings, LLC
|
| Amount: | $700 million
|
| Maturity: | May 1, 2028
|
| Securities: | Senior notes
|
| Active bookrunners: | Citigroup Global Markets Inc.
|
| Joint bookrunners: | BofA Securities Inc., Scotia Capital (USA) Inc., CIBC World Markets Corp., KeyBanc Capital Markets Inc., RBC Capital Markets LLC, Wells Fargo Securities LLC, Fifth Third Securities Inc., Truist Securities Inc., PNC Capital Markets LLC, TD Securities (USA) LLC
|
| Co-managers: | MUFG, BBVA Securities Inc., Goldman Sachs & Co. LLC, U.S. Bancorp Investments Inc., Comerica Securities Inc.
|
| Coupon: | 8½%
|
| Price: | Par
|
| Yield: | 8½%
|
| Spread: | 725 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until May 1, 2024, then callable at 104.25
|
| Equity clawback: | Up to 40% at 108.5 until May 1, 2024
|
| Trade date: | April 23
|
| Settlement date: | April 30
|
| Ratings: | Moody's: B3
|
| S&P: B
|
| Fitch: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8½% area
|
| Marketing: | Roadshow
|
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