New Issue: Venoco sells $150 million 11½% eight-year notes at 95.03 to yield 12½%

By Paul A. Harris

St. Louis, Oct. 2 - Venoco, Inc. priced a $150 million issue of 11½% eight-year senior notes (Caa2/CCC+/) at 95.03 to yield 12½% on Friday, according to an informed source.

The yield printed 37.5 basis points beyond the wide end of the 12% area price talk.

UBS Investment Bank was the left bookrunner. BMO Nesbitt Burns, Credit Suisse Securities and RBS Securities Inc. were joint bookrunners.

Co-managers were Fortis Securities LLC, KeyBanc Capital Markets, Mitsubishi UFJ Securities and Scotia Capital.

Proceeds will be used to redeem the Denver-based oil and gas exploration and development company's existing 8¾% senior notes due 2011.

Issuer:	Venoco, Inc.
Face amount:	$150 million
Proceeds:	$142,515,000
Maturity:	Oct. 1, 2017
Security description:	Senior notes
Left bookrunner:	UBS Investment Bank
Joint bookrunners:	BMO Nesbitt Burns, Credit Suisse Securities, RBS Securities Inc.
Co-managers:	Fortis Securities LLC, KeyBanc Capital Markets, Mitsubishi UFJ Securities, Scotia Capital
Coupon:	11½%
Price:	95.03
Yield:	12½%
Spread:	928 bps
Call features:	Callable on Oct. 1, 2013 at 105.75, 102.875, 101.4375, par on and after Oct. 1, 2016
Equity clawback:	35% at 111.50 until Oct. 1, 2012
Trade date:	Oct. 2
Settlement date:	Oct. 7
Ratings:	Moody's: Caa2
	Standard & Poor's: CCC+
Distribution:	Rule 144A/Regulation S with registration rights
Price talk:	12% area all-in yield

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