Legacy Reserves to sell $300 million eight-year notes Nov. 12 week

By Paul A. Harris

Portland, Ore., Nov. 9 - Legacy Reserves LP and Legacy Reserves Finance Corp. plan to price a $300 million offering of eight-year senior notes late in the week ahead, according to a syndicate source.

Bank of America Merrill Lynch and RBC Capital Markets are the joint global coordinators. UBS and Wells Fargo Securities LLC are the joint bookrunners.

Barclays, BBVA Securities, BMO Securities, Credit Agricole, KeyBanc Capital Markets, Scotia Capital, SG CIB, Union Bank and US Bancorp are the co-managers.

The Rule 144A with registration rights notes come with four years of call protection and feature a 101% poison put.

Credit ratings remain to be determined.

Proceeds will be used to fund a portion of the purchase price of oil and gas properties in the Permian Basin from Concho Resources.

The proceeds will remain in escrow until Jan. 31, 2013, pending the completion of the acquisition. If the acquisition is not completed, then the notes will be redeemed at par plus accrued and unpaid interest.

The prospective issuer is a Midland, Texas-based oil and gas exploration and production company.

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