New Issue: Teine Energy prices $350 million 6 7/8% eight-year notes to yield 7%

By Paul A. Harris

Portland, Ore., Sept. 9 – Teine Energy Ltd. priced a $350 million issue of eight-year senior notes (B3/CCC+/) at 99.234 to yield 7% on Tuesday, according to a market source.

The yield printed at the wide end of yield talk in the 6 7/8% area.

Joint bookrunner Barclays will bill and deliver. J.P. Morgan Securities LLC was also a joint bookrunner.

The Calgary, Alta.-based oil and gas exploration, development and production company plans to use the proceeds to repay and retire its second-lien term loan, including a 1% prepayment premium, as well as to repay all outstanding revolver borrowings and for general corporate purposes.

Issuer:	Teine Energy Ltd.
Face amount:	$350 million
Proceeds:	$347 million
Maturity:	Sept. 30, 2022
Securities:	Senior notes
Bookrunners:	Barclays (bill and deliver), J.P. Morgan Securities LLC
Co-managers:	BMO Securities, TD Securities, NBC, RBC Capital Markets
Coupon:	6 7/8%
Price:	99.234
Yield:	7%
Spread:	469 bps
First call:	Sept. 30, 2017 at 105.156
Trade date:	Sept. 9
Settlement date:	Sept. 12
Ratings:	Moody's: B3
	Standard & Poor's: CCC+
Distribution:	Rule 144A and Regulation S for life
Price talk:	6 7/8% area
Marketing:	Roadshow

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