By Paul A. Harris
Portland, Ore., May 8 – Karoon Energy Ltd. priced $350 million of 10˝% five-year notes (B+/B+) through Karoon USA Finance Inc. on Wednesday, according to a press release.
The size of the issue on the second-priority senior secured notes was smaller than the marketed size at $400 million.
Initial guidance was in the 10˝% area.
The notes are non-callable for two years.
Deutsche Bank led the offering.
Proceeds will be used to repay the drawn amount ($274 million as of Dec. 31, 2023) of the company’s existing $340 million reserve-based lending facility and for general corporate purposes.
Karoon is an Australia-based oil and gas exploration and production company.
| Issuer: | Karoon USA Finance Inc.
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| Amount: | $350 million
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| Issue: | Second-priority senior secured notes
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| Maturity: | May 2029
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| Bookrunner: | Deutsche Bank
|
| Coupon: | 10˝%
|
| Call features: | Two years
|
| Trade date: | May 8
|
| Settlement date: | May 14
|
| Ratings: | S&P: B+
|
| Fitch: B+
|
| Price talk: | 10˝% area
|
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