EP Energy announces $1 billion offering of eight-year secured notes

By Paul A. Harris

Portland, Ore., May 17 – EP Energy Corp. announced that it intends to offer $1 billion of senior secured notes due 2026 to qualified institutional buyers via Rule 144A and Regulation S.

The announcement appeared in an 8-K document which the company filed on Thursday with the Securities and Exchange Commission.

Dealers had not yet stepped forward at mid-morning, nor had deal-timing been announced in the market, a debt capital markets banker said.

The Houston-based oil and natural gas exploration and production company plans to use the proceeds to repay amounts outstanding under its extended and amended RBL facility and for general corporate purposes.

The issuing entities will be EP Energy LLC, a wholly owned subsidiary of EP Energy Corp., and Everest Acquisition Finance Inc., a wholly owned subsidiary of EP Energy LLC.

On May 14, EP Energy received consents from lenders holding $629.4 million of commitments under its senior secured RBL facility to extend the maturity date of the RBL facility to Nov. 23, 2021, the company stated in the 8-K.

In connection with the extension there were also amendments to the facility, the company said.

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