American Energy – Permian Basin to price $560 million five-year secured notes this week

By Paul A. Harris

Portland, Ore., Oct. 19 – American Energy – Permian Basin, LLC plans to price a $560 million offering of five-year senior secured first-lien notes on Tuesday, according to market sources.

The market awaits official price talk. However early guidance has the deal coming with a yield in the 9% area, a trader said.

The offering was scheduled to be the subject of an investment conference call on Monday afternoon.

Goldman Sachs & Co. is the left bookrunner for the Rule 144A and Regulation S for life offering. Jefferies LLC and BofA Merrill Lynch were the joint bookrunners.

The notes come with two years of call protection.

Credit ratings remain to be determined.

The Oklahoma City-based independent oil and gas company plans to use the proceeds to repay all borrowings currently outstanding under its revolver, the amount of which was $201 million as of Sept. 30, 2015.

Proceeds will also possibly be used to fund the remaining portion of the pending acquisition of Enduring Resources LLC.

Any additional proceeds will be used to fund drilling and completion activities, for infrastructure development and for general corporate purposes.

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