New Issue: Venoco $150 million seven-year notes yield 8 7/8%

By Paul A. Harris

St. Louis, Dec. 15 - Venoco Inc. priced $150 million of seven-year senior notes (Caa1/CCC+) Wednesday at 99.362 with an 8¾% coupon to yield 8 7/8%, according to an informed source.

Price talk was the 8¾% area.

Lehman Brothers and Harris Nesbitt ran the books for the Rule 144A/Regulation S issue.

Proceeds will be used to repay bank debt as well as to make a dividend payment and fund an acquisition.

Venoco is a Carpinteria, Calif.-based independent energy company primarily engaged in the acquisition, exploitation and development of oil and gas in California.

Issuer:	Venoco Inc.
Amount:	$150 million
Maturity:	Dec. 15, 2011
Security description:	Senior notes
Bookrunners:	Lehman Brothers, Harris Nesbitt
Coupon:	8¾%
Price:	99.362
Yield:	8 7/8%
Spread:	507 basis points
Call features:	Make-whole call at Treasuries plus 50 basis points until Dec. 15, 2008, then callable at 104.375, 102.188, par on and after Dec. 15, 2010
Equity clawback:	Until Dec. 15, 2007 for to 35% at 108.75
Trade date:	Dec. 15
Settlement date:	Dec. 20
Ratings:	Moody's: Caa1
	Standard & Poor's: CCC+
Price talk:	8¾% area

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