Published on 3/30/2004 in the Prospect News High Yield Daily.
New Issue: Encore sells $150 million 10-year notes to yield 6¼%
By Paul A. Harris
St. Louis, March 30 - Encore Acquisition Co. sold $150 million of 10-year senior subordinated notes (B2/B) Tuesday at par to yield 6¼%, a syndicate source said.
Price talk was 6¼% to 6½%.
Goldman Sachs & Co. ran the books on the Rule 144A issue. Credit Suisse First Boston was joint lead manager. The co-managers were Fleet Securities, Deutsche Bank Securities, JP Morgan, BNP Paribas, Fortis, KeyBank and Stanford Group.
Proceeds will be used to fund the Cortez Oil & Gas Inc. acquisition, announced on March 2, and to repay bank debt.
The issuer is a Fort Worth, Texas-based independent energy company engaged in the acquisition, development and exploitation of North American oil and natural gas reserves.
Issuer: | Encore Acquisition Co.
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Amount: | $150 million
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Maturity: | April 15, 2014
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Security description: | Senior subordinated notes
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Bookrunner: | Goldman Sachs & Co.
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Joint lead manager: | Credit Suisse First Boston
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Co-managers: | Fleet Securities, Deutsche Bank Securities, JP Morgan, BNP Paribas, Fortis, KeyBank, Stanford Group
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Coupon: | 6¼%
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Price: | Par
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Yield: | 6¼%
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Spread: | 236 basis points
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Call features: | Callable after April 15, 2009 at 103.125, 102.167, 101.042, par on or after April 15, 2012
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Pricing date: | March 30
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Settlement date: | April 2
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Ratings: | Moody's: B2
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| Standard & Poor's: B
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Price talk: | 6¼%-6½%
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