Published on 4/18/2007 in the Prospect News High Yield Daily.
New Issue: Energy Partners prices $450 million two-part note offering
By Paul A. Harris
St. Louis, April 18 - Energy Partners Ltd. priced a $450 million two-part senior unsecured note offering (Caa1/B-) on Wednesday, according to a market source.
The New Orleans-based independent oil and natural gas exploration and production company priced a $150 million tranche of six-year floating-rate notes at par to yield three-month Libor plus 512.5 basis points, on the wide end of the Libor plus 500 bps area price talk.
In addition Energy Partners priced a $300 million tranche of seven-year fixed-rate notes at par to yield 9¾%, on top of the 9¾% area price talk.
Banc of America Securities LLC was the bookrunner for the notes, which were marketed via Rule 144A with registration rights and via Regulation S. BNP Securities, Merrill Lynch & Co., UBS Investment Bank, Friedman Billings Ramsey and Johnson Rice & Co. were the co-managers.
Proceeds, together with a new revolver, will be used to fund the tender for up to 8.7 million common shares at $23 per share and $150 million 8¾% senior notes due 2010, and to refinance existing revolver debt.
| Issuer: | Energy Partners Ltd.
|
| Amount: | $450 million
|
| Security description: | Senior notes
|
| Bookrunner: | Banc of America Securities LLC
|
| Co-managers: | BNP Securities, Merrill Lynch & Co., UBS Investment Bank, Friedman Billings Ramsey, Johnson Rice
|
| Trade date: | April 18
|
| Settlement date: | April 23
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A with registration rights/Regulation S
|
|
|
| Fixed-rate notes
|
| Amount: | $300 million
|
| Maturity: | April 15, 2014
|
| Coupon: | 9¾%
|
| Price: | Par
|
| Yield: | 9¾%
|
| Spread: | 514 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until April 15, 2011, then at 104.875, 102.438, par on and after April 15, 2013
|
| Equity clawback: | Until April 15, 2010 for 35% at 109.75
|
| Price talk: | 9¾% area
|
|
|
| Floating-rate notes
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| Amount: | $150 million
|
| Maturity: | April 15, 2013
|
| Coupon: | Three-month Libor plus 512.5 bps
|
| Price: | Par
|
| Yield: | Three-month Libor plus 512.5 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until April 15, 2008, then at 102, 101, par and after April 15, 2010
|
| Equity clawback: | Until April 15, 2010 at par plus applicable coupon
|
| Price talk: | Libor plus 500 bps area
|
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