EnVen Energy expected to price $300 million second-lien notes on Thursday, initial talk 12% at 98

By Paul A. Harris

Portland, Ore., April 6 – EnVen Energy Corp. expects to price a $300 million offering of five-year senior secured second-lien notes on Thursday, according to market sources.

The deal, which was set to kick off on a Tuesday conference call with investors, is in the market with initial guidance of 12% at 98.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., KeyBanc Capital Markets Inc., SG Americas Securities LLC, Capital One Securities Inc. and First Horizon are managing the sale.

The Rule 144A and Regulation S for life notes come with two years of call protection.

The issuing entities will be subsidiaries Energy Ventures GoM LLC and EnVen Finance Corp. (co-issuer).

The Houston-based independent deepwater exploration and production operator plans to use the proceeds to redeem its 11% senior secured second-lien notes due 2023, with the remainder, if any, to be used for general corporate purposes.

In connection with the notes offer the company intends to amend its revolver in order to, among other things, extend the maturity to 2024, establish a revised, reduced borrowing base of $165 million and modify the interest rates, the company stated in a Tuesday press release.

The notes offer is conditioned on the amendment, and the amendment is conditioned on the consummation of the notes offer, the release added.

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