Published on 6/24/2014 in the Prospect News High Yield Daily.
New Issue: Hilcorp Energy sells $500 million 10.5-year notes at par to yield 5%
By Paul A. Harris
Portland, Ore., June 24 – Hilcorp Energy priced a $500 million issue of senior notes due Dec. 1, 2024 (Ba3/BB/) at par to yield 5% in a quick-to-market Tuesday transaction, according to market sources.
The yield printed at the tight end of the 5% to 5¼% yield talk. Initial guidance was in the 5¼% area.
J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Wells Fargo Securities LLC, Barclays and BMO Capital Markets Corp. were the joint bookrunners.
The notes come with five years of call protection.
The Houston-based energy exploration and production company plans to use the proceeds for general corporate purposes as well as to fund pending acquisitions.
| Issuer: | Hilcorp Energy
|
| Amount: | $500 million
|
| Maturity: | Dec. 1, 2024
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Wells Fargo Securities LLC, Barclays, BMO Capital Markets Corp.
|
| Co-managers: | BBVA Securities Inc., Capital One Securities Inc., SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments Inc., BB&T Capital Markets, Comerica Securities Inc., Mitsubishi UFJ Securities (USA) Inc.
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Spread: | 248 bps
|
| First call: | June 1, 2019 at 102.5
|
| Trade date: | June 24
|
| Settlement date: | July 9
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5% to 5¼%
|
| Marketing: | Quick to market
|
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