Goodrich Petroleum to sell $150 million 20-year convertibles to yield 4.75%-5.25%, up 27.5%-32.5%

By Rebecca Melvin

New York, Sept. 22 - Goodrich Petroleum Corp. plans to price $150 million of 20-year convertible senior notes before the markets open Wednesday. The notes are talked to yield 4.75% to 5.25% with an initial conversion premium of 27.5% to 32.5%, according to market sources.

The registered offering has a greenshoe of up to $22.5 million of additional notes and is being sold via bookrunner J.P. Morgan Securities Inc.

The bonds will be non-callable for five years, with puts in years five, 10 and 15. There is takeover and dividend protection.

Goodrich will use a portion of proceeds to repay its $75 million second-lien term loan and all amounts outstanding under its senior credit facility, with the remainder earmarked for general corporate purposes.

Houston-based Goodrich is an independent oil and gas company active primarily in east Texas and northwest Louisiana.

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