Great Western Petroleum talks $350 million 11¼% five-year notes at 97.5 to yield about 11.93%

By Paul A. Harris

Portland, Ore., Feb. 4 – Great Western Petroleum, LLC and Great Western Finance Corp. talked their $350 million offering of five-year senior secured second-lien notes with an 11¼% coupon at an issue price of 97.5 to yield approximately 11.93%, according to a market source.

Books close at 9 a.m. ET on Friday, and the Rule 144A and Regulation S for life deal is set to price thereafter.

Bookrunner Barclays will bill and deliver. Citigroup Global Markets Inc. is also a bookrunner.

MUFG, Truist Securities Inc., Credit Suisse Securities (USA) LLC, KeyBanc Capital Markets Inc., PNC Capital Markets LLC and Citizens Capital Markets Inc. are passive bookrunners.

CIT Capital Securities LLC, Macquarie Capital (USA) Inc. and SG Americas Securities LLC are co-managers.

The notes come with two years of call protection.

In the offering documents the thresholds of a special call which would be triggered by a merger and acquisition event were changed. The call premium increased to 110 from 105. The call period increased to 12 months from six months.

The Denver-based energy exploration and production company plans to use the proceeds to redeem all of its 2021 notes and to pay down its reserve-based loan.

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