Endeavour Price Talk Reaches 11.5%, Pricing Today
Proceeds to fund its acquisition of three oil fields in the North Sea
February 8, 2012
Price talk on Endeavour International’s $500 million bond offering has reached 11.5%, according to reports. The bonds will likely price today.
The Houston-based oil and gas exploration company Endeavour is selling senior notes due 2020 and plans to use the proceeds to fund its acquisition of three oil fields in the North Sea of the U.K. from ConocoPhillips, repay its senior term loan due 2013 and for general corporate purposes.
Lead bookrunner Citigroup is joined by BNP Paribas, FBR, Global Hunter, Imperial Capital and Wunderlich Securities. Citigroup committed $500 million to the company in December to fund its oil field acquisitions and repay the term loan.
Moody’s Investors Service has rated the bonds Caa1 and Standard & Poor’s has rated them CCC.
The company’s last effort to tap the high yield market to repay its term loan was unsuccessful; in June 2011 the company pulled a $250 million offering of senior notes due 2016.
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