PetroQuest sets talk for $200 million 10% mirror notes at par to 101

By Paul A. Harris and Aleesia Forni

Virginia Beach, Va., June 28 - PetroQuest Energy, Inc. set price talk for a proposed $200 million offering of notes mirroring its 10% senior notes due Sept. 1, 2017 (expected ratings Caa1/B) at par to 101, according to a market source.

Books close at noon ET on Friday, and pricing is expected shortly after.

J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.

Capital One Southcoast, Stifel Nicholas, Global Hunter Securities, Johnson Rice & Co. LLC, Scotia Capital, Evercore, Iberia and Raymond James are the co-managers.

The Rule 144A and Regulation S with registration rights notes will become callable on Sept. 1, 2014 at 105.

The Lafayette, La.-based independent energy exploration and production company plans to use the proceeds to fund the acquisition of producing oil and gas assets located in the shallow waters of the Gulf of Mexico from Hall-Houston Exploration II, LP, Hall-Houston Exploration III, LP, Hall-Houston Exploration IV, LP and GOM-H Exploration, LLC for approximately $193 million in cash.

The original $150 million issue of the notes priced at par in August 2010.

The company began a brief roadshow and conducted an investor call on Wednesday.

The issuer expects the proposed mirror notes to be fungible with the existing notes upon a registered exchange.

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