Colgate Energy to price $200 million tap of 5 7/8% notes due 2029 in Monday drive-by

By Paul A. Harris

Portland, Ore., Nov. 8 – Colgate Energy Partners III, LLC plans to price a $200 million add-on to its 5 7/8% senior notes due July 1, 2029 (existing rating B3/B) in a Monday drive-by following a conference call with investors, according to a syndicate source.

Wells Fargo Securities LLC is the left bookrunner for the Rule 144A and Regulation S for life offering. Goldman Sachs & Co. LLC, Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Truist Securities Inc., PNC Capital Markets LLC, Fifth Third Securities Inc., U.S. Bancorp Investments Inc. and Comerica Securities Inc. are the joint bookrunners.

The notes become callable on July 1, 2024 at 102.938.

The Midland, Tex.-based energy exploration and production company plans to use the proceeds to repay amounts outstanding under its credit agreement and to help fund the acquisition of certain assets in Eddy and Lea Counties, N.M. (the “Parkway acquisition”).

If the Parkway acquisition is not consummated Colgate intends to use the proceeds for general company purposes.

The original $500 million issue priced in June 2021.

The Rule 144A add-on notes will become immediately fungible with the original notes.

The Regulation S add-on notes will become fungible with the original notes following a 40-day cooling period.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.