Warren Resources revises talk on $300 million notes to 9¼% yield, including discount

By Paul A. Harris

Portland, Ore., Aug. 6 – Warren Resources, Inc. revised price talk on its $300 million offering of eight-year senior notes (Caa1/B-) on Wednesday, according to a syndicate source.

New talk has the notes pricing at a discount to yield 9¼%. Earlier talk, set on July 30, had them coming in the 8¼% area.

Books close 2 p.m. ET Wednesday, and the deal is set to price thereafter.

BMO Capital Markets Corp. is the left bookrunner for the Rule 144A with registration rights offering. Jefferies LLC and Wells Fargo Securities LLC are the joint bookrunners.

Capital One, U.S. Bancorp Investments Inc., BOSC, Comerica, KeyBanc Capital Markets and Santander are the co-managers.

The notes come with three years of call protection and feature a three-year 35% equity clawback and a 101% poison put.

The New York-based independent energy company plans to use the proceeds to fund a portion of the approximately $312.5 million cash purchase price for its recently announced acquisition of the Marcellus assets of Citrus Energy Corp. and two additional working interest owners.

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