By Paul A. Harris
Portland, Ore., Feb. 1 – EP Energy LLC priced an upsized $1 billion issue of eight-year 1.5-lien senior secured notes (Caa1/B-) at par to yield 8% on Wednesday, according to an informed source.
The issue size was increased from $600 million.
The yield printed on top of yield talk in the 8% area.
Credit Suisse Securities (USA) LLC was the bookrunner.
The Houston-based oil and natural gas exploration and production company plans to use the proceeds to refinance its 1.5-lien term loan.
EP Energy is primarily focused on the Eagle Ford, Permian and Uinta basins.
Issuers: | EP Energy LLC and Everest Acquisition Finance Inc.
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Amount: | $1 billion, increased from $600 million
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Maturity: | Feb. 15, 2025
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Securities: | Senior secured 1.5-lien notes
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Bookrunner: | Credit Suisse Securities (USA) LLC
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Coupon: | 8%
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Price: | Par
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Yield: | 8%
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Spread: | 559 bps
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First call: | Feb. 15, 2020 at 106
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Equity clawback: | 35% at 108 until Feb. 15, 2020
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Trade date: | Feb. 1
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Settlement date: | Feb. 6
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Ratings: | Moody's: Caa1
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| S&P: B-
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Distribution: | Rule 144A and Regulation S for life
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Price talk: | 8% area
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Marketing: | Roadshow
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