EM-focused Frontera launches $350 million five-year notes at 10%

By Rebecca Melvin

New York, June 20 – Frontera Energy Corp. launched $350 million of five-year notes to yield 10%. The notes are non-callable for three years, and the issue is expected to price later Wednesday, according to a market source.

The deal was increased from an initial offer size of $300 million earlier on Wednesday. But it was down from the $500 million size talked when the deal was originally announced early this month.

BofA Merrill Lynch, Citigroup, HSBC, Itau BBA and JPMorgan are the bookrunners for the Rule 144A and Regulation S deal.

Proceeds will be used to repurchase $250 million of the company’s 10% senior secured notes due 2021 under a tender offer, also announced Monday, and for general corporate purposes.

Frontera is a Toronto-based explorer and producer of crude oil and natural gas with a focus on Colombia.

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