By Paul A. Harris
Portland, Ore., April 5 – Hilcorp Energy I, LP and Hilcorp Energy Finance Co. priced an upsized $1 billion amount of senior notes (Ba3/BB+) in two tranches in a Tuesday drive-by, according to market sources.
The deal, which was upsized from $800 million, included a $500 million tranche of eight-year notes which priced at par to yield 6%. The yield printed at the tight end of the 6% to 6¼% yield talk. Initial guidance was 6¼% to 6½%.
The deal also included a $500 million tranche of 10-year notes which priced at par to yield 6¼%. The yield printed at the tight end of the 6¼% to 6½% yield talk. Initial guidance was 6½% to 6¾%.
There was $3 billion plus of demand across both tranches, according to a sellside source who had both tranches going out par ¼ bid, par ¾ offered.
J.P. Morgan Securities LLC managed the Rule 144A and Regulation S sale.
The Houston-based private energy exploration and production company plans to use the proceeds plus a new credit facility to pay off the term loan entered into by subsidiary Hilcorp North Slope, LLC, in connection with Hilcorp's acquisition of BP's Alaska operations in the summer of 2020.
| Issuer: | Hilcorp Energy I, LP and Hilcorp Energy Finance Co.
|
| Amount: | $1 billion
|
| Securities: | Senior notes
|
| Lead: | J.P. Morgan Securities LLC
|
| Trade date: | April 5
|
| Settlement date: | April 8
|
| Ratings: | Moody's: Ba3
|
| S&P: BB+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Drive-by
|
|
|
| Eight-year notes
|
| Amount: | $500 million
|
| Maturity: | April 15, 2030
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Call protection: | Three years
|
| Price talk: | 6% to 6¼%
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | April 15, 2032
|
| Coupon: | 6¼%
|
| Price: | Par
|
| Yield: | 6¼%
|
| Call protection: | Five years
|
| Price talk: | 6¼% to 6½%
|
|
|
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