Published on 1/31/2006 in the Prospect News High Yield Daily.
New Issue: Copano prices $225 million 10-year notes to yield 8 1/8%
By Paul A. Harris
St. Louis, Jan. 31 - Copano Energy LLC priced a $225 million issue of 10-year senior notes (B2/B) at par to yield 8 1/8% on Tuesday, according to an informed source.
The yield came at the tight end of the 8¼% area price talk.
Banc of America Securities LLC had the books for the issue, which was sold via Rule 144A with registration rights. Credit Suisse, Goldman Sachs & Co. and Lehman Brothers were the senior co-managers. Comerica, Fortis Investments, KeyBanc, Piper Jaffray and RBC Capital Markets were the co-managers.
Proceeds will be used to repay the company's senior unsecured term loan incurred in connection with its acquisition of ScissorTail Energy LLC and to pay down other existing debt.
Copano is a Houston-based midstream natural gas company with natural gas gathering, intrastate pipeline and natural gas processing assets in the Texas Gulf Coast region and in central and eastern Oklahoma.
| Issuer: | Copano Energy LLC
|
| Amount: | $225 million
|
| Maturity: | March 1, 2016
|
| Security description: | Senior notes
|
| Bookrunner: | Banc of America Securities LLC
|
| Senior co-managers: | Credit Suisse, Goldman Sachs & Co., Lehman Brothers
|
| Co-managers: | Comerica, Fortis Investments, KeyBanc, Piper Jaffray, RBC Capital Markets
|
| Coupon: | 8 1/8%
|
| Price: | Par
|
| Yield: | 8 1/8%
|
| Spread: | 360 basis points
|
| Call features: | Callable after March 1, 2011 at 104.063, 102.708, 101.354, par on and after March 1, 2014
|
| Equity clawback: | Until March 1, 2009 for 35% at 108.125
|
| Trade date: | Jan. 31
|
| Settlement date: | Feb. 7
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 8¼% area
|
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