Energy Partners' acquisition of Stone Energy expected to result in $730 million September bond deal

By Paul A. Harris

St. Louis, Aug. 21 - Energy Partners, Ltd.'s (EPL) acquisition of Stone Energy Corp. is expected to bring $730 million of senior unsecured notes to the high-yield market during September, according to a buyside source, who spoke Monday on background.

Banc of America Securities LLC, which has provided $730 million of bridge financing in a deal that closed last Friday, is the expected bookrunner, the source added.

Proceeds will be used to help fund the acquisition of Stone Energy by EPL, valued at $2.2 billion, of which $1.4 billion is Stone Energy's equity and about $800 million is Stone Energy debt that will be refinanced.

EPL is an independent oil and natural gas exploration and production company based in New Orleans, with operations focused along the U. S. Gulf Coast, both onshore in south Louisiana and offshore in the Gulf of Mexico.

Stone Energy is an independent oil and gas company based in Lafayette, La., engaged in the acquisition and exploration, development, operation and production of oil and gas properties located in the conventional shelf, the deep shelf and deep water of the Gulf of Mexico, as well as the Rocky Mountain basins and the Williston Basin.

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