New Issue: Mariner Energy sells upsized $300 million 11¾% seven-year notes to yield 12 3/8%

By Paul A. Harris

St. Louis, June 4 - Mariner Energy, Inc. priced an upsized $300 million issue of 11¾% seven-year senior notes (B3/B+/) at 97.093 to yield 12 3/8% on Thursday, according to market sources.

The yield was printed at the tight end of the 12½% area price talk.

Credit Suisse, Banc of America Securities LLC, J.P. Morgan Securities Inc., Wachovia Securities LLC and Citigroup Global Markets Inc. were joint bookrunners for the deal, which was upsized from $250 million.

Proceeds will be used to repay debt under Mariner's secured bank credit facility and for general corporate purposes.

The issuer is a Houston-based oil and gas exploration, development and production company.

Issuer:	Mariner Energy, Inc.
Face amount:	$300 million, increased from $250 million
Proceeds:	$291.279 million
Maturity:	June 30, 2016
Bookrunners:	Credit Suisse, Banc of America Securities LLC, J.P. Morgan Securities Inc., Wachovia Securities LLC, Citigroup Global Markets Inc.
Coupon:	11¾%
Price:	97.093
Yield:	12 3/8%
Spread:	907 bps
Call features:	Callable on June 30, 2013 at 105.875, 102.938, par on and after June 30, 2015
Trade date:	June 4
Settlement date:	June 10
Ratings:	Moody's: B3
	Standard & Poor's: B+
Distribution:	SEC registered
Price talk:	12½% area

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