New Issue: Memorial Production prices $500 million 6 7/8% eight-year notes to yield 7 1/8%

By Paul A. Harris

Portland, Ore., July 14 – Memorial Production Partners LP and Memorial Production Finance Corp. priced a $500 million issue of 6 7/8% eight-year senior notes (Caa1/CCC /) at 98.485 to yield 7 1/8% on Monday, according to a syndicate source.

The yield printed at the wide end of yield talk in the 7% area.

Barclays was the lead left bookrunner. J.P. Morgan Securities LLC, Citigroup Global Markets Inc., BofA Merrill Lynch, MUFG, RBC Capital Markets and Wells Fargo Securities LLC were the joint bookrunners.

Proceeds will be used to repay revolver debt and for general partnership purposes.

The issuer is a Houston-based upstream master limited partnership focused on oil and gas development.

Issuer:	Memorial Production Partners LP and Memorial Production Finance Corp.
Amount:	$500 million
Proceeds:	$492 million
Maturity:	Aug. 1, 2022
Securities:	Senior notes
Left bookrunner:	Barclays
Joint bookrunners:	J.P. Morgan Securities LLC, Citigroup Global Markets Inc., BofA Merrill Lynch, MUFG, RBC Capital Markets, Wells Fargo Securities LLC
Co-managers:	BBVA, Capital One, CIBC World Markets, Credit Agricole CIB, ING, Natixis, UBS Investment Bank, U.S. Bancorp Investments Inc.
Coupon:	6 7/8%
Price:	98.485
Yield:	7 1/8%
Spread:	480 bps
First call:	Aug. 1, 2017 at 105.156
Trade date:	July 14
Settlement date:	July 17
Ratings:	Moody's: Caa1
	Standard & Poor's: CCC
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	7% area
Marketing:	Quick to market

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