Neptune Energy launches upsized $550 million eight-year notes to yield 6 5/8%; pricing Tuesday

By Paul A. Harris

Portland, Ore., May 1 – Neptune Energy Group Midco Ltd. and Neptune Energy Bondco plc launched an upsized $550 million offering of eight-year senior notes (B2/BB-) at 6 5/8%, on the tight end of official yield talk in the 6¾% area, according to market sources.

Books were scheduled to close at 9 a.m. ET on Tuesday, and the deal is expected to price and allocate later Tuesday.

The issue size was increased from $500 million.

Official talk came tight to initial talk in the high 6% to 7% area.

Global coordinator and sole physical bookrunner J.P. Morgan Securities LLC will bill and deliver for the Rule 144A for life deal. Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. are also global coordinators.

Bank of China, BNP Paribas, DNB Markets, Goldman Sachs & Co., ING, Morgan Stanley & Co., Natixis Securities, RBC Capital Markets LLC, Scotia Capital and SG CIB are joint bookrunners.

The notes come with three years of call protection.

The London-based oil and gas exploration and production company plans to use the proceeds, including the additional proceeds resulting from the $50 million upsizing of the deal, to pay down its revolving credit facility.

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