Published on 11/28/2017 in the Prospect News High Yield Daily.
New Issue: Endeavor Energy prices upsized $1 billion senior notes in two parts
By Paul A. Harris
Portland, Ore., Nov. 28 – Endeavor Energy Resources, LP and EER Finance, Inc. priced an upsized $1 billion amount of senior notes (B3/BB-) in two tranches on Tuesday, according to a syndicate source.
The deal included $500 million of eight-year notes, which priced at par to yield 5½%. The yield printed at the tight end of yield talk in the 5 5/8% area.
In addition the company priced an upsized $500 million amount of 10-year notes at par to yield 5¾%. The tranche size increased from $300 million. The yield printed at the tight end of the 5¾% to 5 7/8% yield talk.
The overall amount of issuance was increased from $800 million.
Goldman Sachs & Co. was the left bookrunner. Credit Suisse Securities (USA) LLC is a physical bookrunner. BMO Securities, Citigroup Global Markets Inc., BofA Merrill Lynch, MUFG, PNC Capital Markets and Wells Fargo Securities LLC were joint bookrunners.
The Midland, Texas-based oil and gas exploration and production company plans to use the proceeds plus cash on-hand to refinance its notes maturing in 2021 and for general purposes.
Issuers: | Endeavor Energy Resources, LP and EER Finance, Inc.
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Amount: | $1 billion, increased from $800 million
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Securities: | Senior notes
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Left bookrunner: | Goldman Sachs & Co.
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Physical bookrunner: | Credit Suisse Securities (USA) LLC
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Joint bookrunners: | BMO Securities Inc., Citigroup Global Markets Inc., BofA Merrill Lynch, MUFG, PNC Capital Markets, Wells Fargo Securities LLC
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Co-managers: | BB&T, CIBC, Credit Agricole, Natixis, Regions, Scotia
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Trade date: | Nov. 28
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Settlement date: | Dec. 7
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Ratings: | Moody's: B3
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| S&P: BB-
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Distribution: | Rule 144A and Regulation S for life
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Marketing: | Quick to market
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Eight-year notes
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Amount: | $500 million
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Maturity: | Jan. 30, 2026
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Coupon: | 5½%
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Price: | Par
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Yield: | 5½%
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Spread: | 320 bps
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Call protection: | Three years
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Price talk: | 5 5/8% area
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|
10-year notes
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Amount: | $500 million, increased from $300 million
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Maturity: | Jan. 30, 2028
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Coupon: | 5¾%
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Price: | Par
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Yield: | 5¾%
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Spread: | 341 bps
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Call protection: | Five years
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Price talk: | 5¾% to 5 7/8%
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