By Paul A. Harris
St. Louis, March 5 - Evergreen Resources Inc. sold $200 million of eight-year senior subordinated notes (Ba3/BB-) Friday at 99.213 with a 5 7/8% coupon to yield 6%, a market source said.
Price talk was 6% to 6¼%.
Goldman Sachs & Co. ran the books on the Rule 144A issue. BNP Paribas, UBS Investment Bank and Wachovia Securities were joint lead managers. The co-managers were AG Edwards, Banc One Capital Markets, First Albany, Hibernia, Howard Weil, Raymond James and RBC.
Proceeds will be used to repay $149.5 million of bank debt, to fund future development expenditures and for general corporate purposes.
The issuer is a Denver-based natural gas exploration and production company.
| Issuer: | Evergreen Resources Inc.
|
| Amount: | $200 million
|
| Maturity: | March 15, 2012
|
| Security description: | Senior subordinated notes
|
| Bookrunner: | Goldman Sachs & Co.
|
| Joint lead managers: | BNP Paribas, UBS Investment Bank, Wachovia Securities
|
| Coupon: | 5 7/8%
|
| Price: | 99.213
|
| Yield: | 6%
|
| Spread: | 246 basis points
|
| Call features: | Callable after March 15, 2008 at 102.988, 101.494, par on and after March 15, 2010
|
| Equity clawback: | Until March 15, 2007 for 35% at 105.875
|
| Trade date: | March 5
|
| Settlement date: | March 10
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB-
|
| Price talk: | 6%-6¼%
|
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