New Issue: EP Energy sells upsized $350 million 10-year notes at par to yield 7¾%

By Paul A. Harris

Portland, Ore., Aug. 8 - EP Energy LLC priced an upsized $350 million issue of 10-year senior notes (B2/B/) at par to yield 7¾% on Wednesday, according to a syndicate source.

The yield printed at the tight end of the 7¾% to 8% yield talk.

Citigroup Global Markets Inc. was the lead bookrunner for the quick-to-market deal, which was upsized from $300 million.

Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Nomura and Wells Fargo Securities LLC were the joint bookrunners.

The Houston-based oil and natural gas exploration and production company plans to use the proceeds to repay debt under its senior secured reserve-based revolving credit facility.

Issuer:	EP Energy LLC and Everest Acquisition Finance Inc.
Amount:	$350 million, increased from $300 million
Maturity:	Sept. 1, 2022
Securities:	Senior notes
Lead bookrunner:	Citigroup Global Markets Inc.
Joint bookrunners:	Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Nomura, Wells Fargo Securities LLC
Coupon:	7¾%
Price:	Par
Yield:	7¾%
Spread:	611 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Sept. 1, 2017, then callable at 103.875, 102.583, 101.292, par on and after Sept. 1, 2020
Equity clawback:	35% at 107.75 until Sept. 1, 2015
Change-of-control put:	101%
Trade date:	Aug. 8
Settlement date:	Aug. 13
Ratings:	Moody's: B2
	Standard & Poor's: B
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	7¾% to 8%
Marketing:	Quick to market

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