By Paul A. Harris
St. Louis, April 19 - Mariner Energy, Inc. priced an upsized $300 million issue of 7½% seven-year senior notes (B3/B-) at 98.676 to yield 7¾% on Thursday, according to an informed source.
The yield came at the wide end of the 7½% to 7¾% price talk.
Lehman Brothers and JP Morgan were joint bookrunners for the Rule 144A and Regulation S issue.
Proceeds will be used to repay bank debt.
The issue was upsized from $250 million.
Mariner is a Houston-based independent oil and gas exploration, development and production company with principal operations in the Gulf of Mexico and the Permian Basin in West Texas.
| Issuer: | Mariner Energy, Inc.
|
| Amount: | $300 million (increased from $250 million)
|
| Maturity: | April 15, 2013
|
| Security description: | Senior notes
|
| Bookrunners: | Lehman Brothers, JP Morgan
|
| Coupon: | 7½%
|
| Price: | 98.676
|
| Yield: | 7¾%
|
| Spread: | 278 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until April 15, 2010 then callable at 103.75, 101.875, par on and after April 15, 2012
|
| Equity clawback: | Until April 15, 2009 for up to 35% at 107.50
|
| Trade date: | April 19
|
| Settlement date: | April 24
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A/Regulation S
|
| Price talk: | 7½%-7¾%
|
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