Consolidated Energy sets price talk on upsized $550 million two-part notes offering; pricing Friday

By Paul A. Harris

Portland, Ore., May 25 – Consolidated Energy Ltd. upsized its two-part offering of senior notes (B2) to $550 million from $500 million and set price talk, according to a syndicate source.

A $300 million minimum amount of eight-year fixed-rate notes, which are non-callable for three years, is talked to yield in the 7% area, inside of the 7¼% to 7½% initial guidance, sources say.

A to-be-determined amount of five-year floating-rate notes, which are non-callable for one year, is talked with a 375 basis points spread to Libor with a 0% Libor floor at 99.75, atop initial guidance.

Books closed on Thursday except for accounts on the West Coast of the United States having Friday roadshow meetings. For those West Coast investors books close at 10 a.m. ET on Friday.

The Rule 144A and Regulation S for life deal is also set to price on Friday.

Morgan Stanley & Co. LLC is the bookrunner. J.P. Morgan Securities LLC and Credit Agricole CIB are the co-managers.

The issuing entity will be financing unit Consolidated Energy Finance SA.

The Miami-based holding company plans to use the proceeds to refinance debt.

Consolidated Energy acquires and develops companies that focus on alternative waste management and energy production.

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