By Rebecca Melvin
New York, July 11 – Energy & Exploration Partners Inc. priced $375 million of five-year convertible subordinated notes under Rule 144A at par to yield 8%, according to a syndicate source.
Holders of the notes will have the option to convert their notes into shares of Energy & Exploration upon the closing of the first qualified, registered public offering of the company’s common stock. No timing for the IPO was yet available.
Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Global Hunter Securities LLC were joint bookrunners of the offering.
Proceeds of the deal will be used together with borrowing under a senior secured term loan to pay the purchase price for the company’s recently announced acquisition of oil and gas assets from TreadStone Energy Partners LLC, to refinance and replace its outstanding senior unsecured notes and to fund a portion of its 2014 and 2015 capital expenditure budget.
Fort Worth, Texas-based Energy & Exploration is a developer of onshore North American oil and gas assets.
| Issuer: | Energy & Exploration Partners Inc.
|
| Issue: | Convertible subordinated notes
|
| Amount: | $375 million
|
| Maturity: | 2019
|
| Bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Global Hunter Securities LLC
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Pricing date: | July 10
|
| Settlement date: | July 22
|
| Distribution: | Rule 144A
|
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