New Issue: Laredo Petroleum sells upsized $500 million 10-year notes at par to yield 7 3/8%

By Paul A. Harris

Portland, Ore., April 24 - Laredo Petroleum, Inc. priced an upsized $500 million issue of 10-year senior notes (B3/B-/) at par to yield 7 3/8% on Tuesday, according to a syndicate source.

The yield printed at the tight end of price talk that was set in the 7½% area.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities LLC and Goldman Sachs & Co. were the joint bookrunners for the quick-to-market deal, which as upsized from $400 million.

Tulsa, Okla.-based energy company plans to use the proceeds to repay bank debt and for general corporate purposes.

Issuer:	Laredo Petroleum, Inc.
Amount:	$500 million, increased from $400 million
Maturity:	May 1, 2022
Securities:	Senior notes
Bookrunners:	Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Goldman Sachs & Co.
Lead manager:	BMO Capital Markets Corp.
Co-managers:	BB&T Capital Markets, Banco Bilbao Vizcaya Argentaria SA, BOSC, Inc., Capital One Southcoast Inc., Comerica Securities Inc., Howard Weil Inc., Lloyds Securities Inc., Mitsubishi UFJ Securities (USA), Inc., Scotia Capital (USA) Inc. SG CIB, Tudor, Pickering Holt & Co. Securities Inc.
Coupon:	7 3/8%
Price:	Par
Yield:	7 3/8%
Spread:	542 bps
Call protection:	Make-whole call at Treasuries plus 50 bps until May 1, 2017, then callable at a premium
Trade date:	April 24
Settlement date:	April 27
Ratings:	Moody's: B3
	Standard & Poor's: B-
Distribution:	Rule 144A with registration rights
Price talk:	7½% area
Marketing:	Quick to market

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