Earthstone Energy starts roadshow for $550 million debut notes offer; initial guidance 8% area

By Paul A. Harris

Portland, Ore., April 6 – Earthstone Energy Holdings, LLC started a roadshow on Wednesday for its debut high-yield offering comprised of $550 million of five-year senior notes (expected ratings B3/B+/B+), according to market sources.

Initial guidance is in the 8% area.

An investor call is scheduled to begin at 2 p.m. ET on Wednesday.

The roadshow wraps up Thursday, and the Rule 144A and Regulation S for life deal is set to price later in the April 4 week.

Left bookrunner RBC Capital Markets Corp. will bill and deliver. Wells Fargo Securities LLC and BofA Securities, Inc. are active bookrunners. Truist Securities, Inc., Citizens Capital Markets Inc., KeyBanc Capital Markets Inc., U.S. Bancorp Investments Inc., Fifth Third Securities Inc. and PNC Capital Markets LLC are joint bookrunners.

First Horizon and Comerica are the co-managers.

The notes become callable after two years at par plus 75% of the coupon.

Subsidiary of Earthstone Energy, Inc., The Woodlands, Tex.-based oil and gas exploration and production issuer plans to use the proceeds to repay debt, and for general corporate purposes.

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