Chaparral Energy Plans $400M HY Offer
February 8, 2010
Chaparral Energy is the latest in a string of energy companies to hit the high yield primary market. The Oklahoma City-based oil and natural gas exploration and production company plans to issue $400 million in bonds.
The deal consists of two tranches: $200 million in senior notes due 2018 and $200 million in second-lien senior secured notes due 2015.
Chaparral plans to use the proceeds, along with cash and funds from a new senior secured revolver, to repay debt under its existing credit facility. The high yield offering’s completion is dependent on the company entering into the revolver.
UBS, Credit Suisse and RBS are the joint bookrunners on the high yield deal, and they are reportedly planning a road show that begins Tuesday.
Chaparral is one of several energy companies in the high yield pipeline. Others include NFR Energy, which could price $250 million in senior notes due 2017 as early as Tuesday, and Stallion Oil Holdings, which plans to issue $225 million in senior secured notes due 2015. Crosstex Energy priced $725 million in 8.875% senior notes due 2018 on Feb. 3.
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