Energy Partners plans $300 million revolver, $450 million notes and/or convertibles

By Sara Rosenberg

New York, March 14 - Energy Partners Ltd. plans on getting a new $300 million four-year senior secured revolving credit facility and issuing $450 million in notes and/or convertible notes in connection with its recently announced refinancing and stock repurchase transactions, according to an 8-K filed with the Securities and Exchange Commission Wednesday.

Pricing on the revolver can range from Libor plus 100 to 250 basis points, and the commitment fee can range from 25 to 50 bps, based on use.

Of the total revolver amount, up to $165 million may be drawn at the closing.

Bank of America is the lead arranger, bookrunner and administrative agent on the revolver.

As a backup for the notes and/or convertibles, the company has received a commitment for a $450 million senior unsecured bridge loan from Bank of America.

Proceeds from these deals will be used to refinance the company's existing credit facility, refinance its 8¾% senior notes and fund a self-tender offer for the repurchase of up to 8.7 common shares for about $200 million.

The company plans to divest selected properties for an estimated $125 million to reduce debt following the completion of the self-tender offer.

Energy Partners is a New Orleans-based oil and natural gas exploration and production company.

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