By Paul A. Harris
St. Louis, March 27 - Westport Resources Corp. priced a $125 million add-on to its 8¼% senior subordinated notes due Nov. 1, 2011 (existing ratings Ba3/B+), according to a syndicate source. The deal priced at 106 to yield 7.091%.
Lehman Brothers ran the books on the Rule 144A offering.
Proceeds will be used to redeem all of the 8 7/8% senior subordinated notes due 2007 originally issued by Belco Oil & Gas Corp., which merged with Westport in August 2001.
Westport Resources is independent energy company with oil and natural gas exploitation, acquisition and exploration activities primarily in the Gulf of Mexico, the Rocky Mountains, Permian Basin/Mid-Continent and the Gulf Coast.
Westport priced the original $275 million deal on Oct. 31, 2001 at par and a $300 million add on on Dec. 11, 2002 at 103 to yield 7.68%.
| Issuer: | Westport Resources Corp.
|
| Amount: | $125 million
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| Security description: | Add-on to 8¼% senior subordinated notes due Nov. 1, 2011
|
| Bookrunner: | Lehman Brothers
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| Maturity: | Nov. 1, 2011
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| Coupon: | 8¼%
|
| Price: | 106
|
| Yield: | 7.091%
|
| Spread: | 387 basis points
|
| Call features: | Callable on Nov. 1, 2006 at 104.125, then at 102.75, 101.375, declining to par on Nov. 1, 2009 and thereafter
|
| Equity clawback: | Until Nov. 1, 2004 for 35% at 108.25
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| Settlement date: | April 4, 2003 (T+5) with accrued interest
|
| Existing ratings: | Moody's: Ba3
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| Standard & Poor's: B+
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| Rule 144A Cusip: | 961418AE0
|
| Price talk: | 106
|
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