Samson's $2.25 billion notes offer expected in early January

By Paul A. Harris

Portland, Ore., Dec. 15 - In what could be the first sizable deal of the new year, Samson Investment Co. is expected to bring to market $2.25 billion of senior notes in early January, market sources said.

"People are looking for it during the second week of January," said a high-yield mutual fund manager who participated in the bridge loan that underwent a syndication process in early December.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Barclays Capital Inc., BMO Capital Markets, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Jefferies & Co. Inc., Mizuho Securities USA, Inc., RBC Capital Markets LLC and Wells Fargo Securities LLC are the announced managers.

Proceeds will be used to help fund the buyout of the company by Kohlberg Kravis Roberts & Co. LP, Natural Gas Partners, Crestview Partners and Itochu Corp.

Other funds for the transaction will come from a $2.25 billion senior secured revolver and about $3.5 billion of equity.

Under the terms of the agreement, the investor group will acquire all of Samson's assets for $7.2 billion, with the exception of its onshore Gulf Coast and offshore deep water Gulf of Mexico assets, which will continue to be owned by the Schusterman family.

Closing is expected by year's end, subject to regulatory approval and customary conditions.

Samson is a Tulsa, Okla.-based private exploration and production company.

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