New Issue: Linc Energy sells $125 million 9 5/8% secured notes due 2017

By Paul A. Harris

Portland, Ore., Aug. 8 – Australia-based Linc Energy Ltd. priced a $125 million issue of 9 5/8% first-lien senior secured notes due Oct. 31, 2017 at par on Friday, according to an informed source.

Factoring in a 6.1% exit premium, the notes have an 11.263% yield to maturity. The exist premium is payable upon redemptions and/or calls.

The coupon and reoffer price came on top of price talk.

Imperial Capital LLC was the bookrunner.

Proceeds will be used to repay debt of certain restricted subsidiaries that will guarantee the notes and for general corporate purposes.

The issuing entities are Linc USA GP and Linc Energy Finance (USA) Inc., wholly owned subsidiaries of the Brisbane-based energy producer with a commodity portfolio including oil, gas, shale and coal.

Issuers:	Linc USA GP and Linc Energy Finance (USA), Inc.
Amount:	$125 million
Maturity:	Oct. 31, 2017
Securities:	First-lien senior secured notes
Bookrunner:	Imperial Capital LLC
Coupon:	9 5/8%
Price:	Par
Yield to maturity:	11.263%, factoring in exit premium
Exit premium:	6.1%
Call features:	Callable on or after April 30, 2015 to Oct. 30, 2015 at 104, on or after Oct. 31, 2015 to April 29, 2016 at 103.9, on or after April 30, 2016 to Oct. 30, 2016 at 104, on or after Oct. 31, 2016 to April 29, 2017 at 102.7, on or after April 30, 2017 to Oct. 30, 2017 at 101, par on Oct. 31, 2017
Equity clawback:	35% at 109.625 until April 30, 2015
Trade date:	Aug. 8
Settlement date:	Aug. 13
Distribution:	Rule 144A and Regulation S for life
Price talk:	9 5/8% coupon at par

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