Crescent Energy driving by with $400 million five-year senior notes; initial talk 9½%-9¾%

By Paul A. Harris

Portland, Ore., Jan. 25 – Crescent Energy Co. plans to price a $400 million offering of five-year senior notes (B1/B+/BB-) in a Wednesday drive-by trailing a conference call with investors, according to market sources.

Initial guidance has the notes coming to yield in the 9½% to 9¾% area, a sellside source said.

Wells Fargo Securities LLC is the left bookrunner. BofA Securities Inc., J.P. Morgan Securities LLC, KKR Capital Markets LLC, Mizuho Securities USA Inc., Capital One Securities Inc., Credit Suisse Securities (USA) LLC, Fifth Third Securities Inc., KeyBanc Capital Markets Inc., RBC Capital Markets LLC and Truist Securities Inc. are the joint bookrunners.

The Rule 144A and Regulation S for life notes become callable after two years at par plus 50% of the coupon. They feature a 40% equity clawback during the non-call period and have a 101% poison put.

The Houston-based independent energy company intends to issue via its subsidiary, Crescent Energy Finance LLC, and plans to use the proceeds to pay down its revolving credit facility.

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