Published on 11/12/2019 in the Prospect News High Yield Daily.
New Issue: Endeavor Energy prices $500 million tap of 5¾% notes due 2028 at 104 to yield 4.991%
By Paul A. Harris
Portland, Ore., Nov. 12 – Endeavor Energy Resources, LP and EER Finance, Inc. priced a $500 million add-on to their 5¾% senior notes due Jan. 30, 2028 (B1/BB-) at 104 to yield 4.991% in a quick-to-market Tuesday trade, according to market sources.
The issuer price came at the rich end of the 103 to 104 price talk. Initial guidance was in the 103.5 area.
Joint physical bookrunner Goldman Sachs & Co. LLC will bill and deliver. Citigroup Global Markets Inc. was also a joint physical bookrunner. Joint bookrunners were BMO Capital Markets Corp., MUFG, PNC Capital Markets LLC, BofA Securities LLC and J.P. Morgan Securities LLC.
The Midland, Tex.-based oil and gas exploration and production company plans to use the proceeds to repay debt under its revolver and for general partnership purposes.
| Issuers: | Endeavor Energy Resources, LP and EER Finance, Inc.
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| Amount: | $500 million
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| Maturity: | Jan. 30, 2028
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| Securities: | Senior notes
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| Physical bookrunners: | Goldman Sachs & Co. LLC (bill and deliver) and Citigroup Global Markets Inc.
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| Joint bookrunners: | BMO Capital Markets Corp., MUFG, PNC Capital Markets LLC, BofA Securities LLC and J.P. Morgan Securities LLC
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| Senior co-managers: | BB&T Capital Markets, Capital One Securities Inc., CIBC World Markets Corp., Credit Agricole CIB, Iberia and Scotia Capital (USA) Inc.
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| Co-managers: | Amegy, Citizens Capital Markets Inc., Fifth Third Securities Inc. and SG Americas Securities Inc.
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| Coupon: | 5¾%
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| Price: | 104
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| Yield: | 4.991%
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| First call: | Jan. 30, 2023 at 102.857
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| Trade date: | Nov. 12
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| Settlement date: | Nov. 15
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| Ratings: | Moody's: B1
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| S&P: BB-
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 103 to 104
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| Marketing: | Quick to market
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| Original issue: | $500 million priced in November 2017
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