Triangle USA Petroleum talks $350 million eight-year notes to yield 6¾%-7%; pricing Tuesday

By Paul A. Harris

Portland, Ore., July 14 – Triangle USA Petroleum Corp., the wholly owned exploration and production subsidiary of Triangle Petroleum Corp., talked its $350 million offering of eight-year senior notes (Caa1/CCC ) to yield 6¾% to 7%, according to market sources.

The yield talk comes tighter than the 7% to 7¼% initial guidance, a trader said.

The deal is expected to price on Tuesday.

J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC and BofA Merrill Lynch are the underwriters for the offering, which is being marketed privately to qualified institutional investors.

The notes come with three years of call protection.

The Denver-based energy company plans to use the proceeds to pay down and terminate its second-lien credit facility, to reimburse Triangle Petroleum for capital contributions to Triangle USA in connection with closing the acquisitions of Williston Basin properties previously announced on May 14, to repay a portion of outstanding debt under Triangle USA’s senior credit facility and for other general corporate purposes.

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