By Paul A. Harris
Portland, Ore., July 16 – American Energy – Permian Basin, LLC launched and priced an upsized $1.6 billion three-part offering of senior notes (Caa1/CCC+/) on Wednesday, a market source said.
A $350 million tranche of Euribor plus 650 basis points five-year notes priced at 99. The spread and reoffer price came on top of price talk.
A $650 million tranche of 7 1/8% 6.25-year fixed-rate notes priced at par to yield 7.113%. The yield printed slightly inside of yield talk in the 7¼% area.
A $600 million issue of 7 3/8% 7.25-year fixed-rate notes priced at par to yield 7.363%. The yield came in line with yield talk in the 7½% area.
The overall size of the three-part transaction was increased from $1.4 billion.
Goldman Sachs & Co. was the bookrunner.
The Oklahoma City-based company plans to use the proceeds as part of the financing for the proposed acquisition of Permian Basin business and assets of Enduring Resources II, LLC, as well as for general corporate purposes. The additional proceeds resulting from the $200 million upsizing of the transaction will be used to eliminate a previously anticipated $129 million draw on the company’s revolver and for general corporate purposes.
The issuer is an energy company involved in onshore U.S. unconventional resource plays.
| Issuer: | AEPB Finance Corp. (American Energy – Permian Basin)
|
| Face amount: | $1.6 billion, increased from $1.4 billion
|
| Proceeds: | $1,597,000,000
|
| Securities: | Senior notes
|
| Bookrunner: | Goldman Sachs & Co.
|
| Senior co-managers: | BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Jefferies LLC
|
| Co-managers: | HSBC, MUFG, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, Wells Fargo Securities LLC
|
| Trade date: | July 16
|
| Settlement date: | July 31
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Floating-rate notes
|
| Face amount: | $350 million
|
| Proceeds: | $347 million
|
| Maturity: | Aug. 1, 2019
|
| Coupon: | Three-month Libor plus 650 bps
|
| Price: | 99
|
| First call: | Aug. 1, 2015 at 101
|
| Price talk: | Libor plus 650 bps at 99
|
|
|
| 6.25-year fixed-rate notes
|
| Amount: | $650 million
|
| Maturity: | Nov. 1, 2020
|
| Coupon: | 7 1/8%
|
| Price: | Par
|
| Yield: | 7.113%
|
| Spread: | 504 bps
|
| First call: | Callable after 2.5 years at par plus 75% of the coupon
|
| Price talk: | 7¼% area
|
|
|
| 7.25-year fixed-rate notes
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| Amount: | $600 million
|
| Maturity: | Nov. 1, 2021
|
| Coupon: | 7 3/8%
|
| Price: | Par
|
| Yield: | 7.363%
|
| First call: | Callable after three years at par plus 50% of the coupon
|
| Price talk: | 7½% area
|
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