Endeavor Announces Pricing of $500 Million Private Placement of Additional 5.750% Senior Notes Due 2028
MIDLAND, TX–(November 12, 2019) – Endeavor Energy Resources, LP (“Endeavor”) and its wholly owned subsidiary EER Finance, Inc. (“Finance Corp.” and, together with Endeavor, the “Issuers”) announced today the pricing of its previously announced private placement of $500 million in aggregate principal amount of 5.750% senior unsecured notes due 2028 (the “2028 Notes”). The 2028 Notes mature on January 30, 2028, pay interest at the rate of 5.750% per year and were priced at 104.000% of par resulting in a yield to worst of 4.991%. The offering is expected to close on November 15, 2019.
The Issuers previously issued $500 million in aggregate principal amount of 2028 Notes on December 7, 2017 (the “Existing Notes”). The notes being offered will have identical terms, other than the issue price and the issue date, as the existing 2028 Notes, and the notes being offered and the existing 2028 Notes will be treated as a single class of securities under the indenture governing the 2028 Notes. Endeavor intends to use the net proceeds from this offering to repay amounts outstanding under its revolving credit facility and any remaining net proceeds for general partnership purposes.
The securities to be offered have not been registered under the Securities Act, or any state securities laws, and unless so registered, the securities may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. Endeavor plans to offer and sell the notes only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to persons outside the United States pursuant to Regulation S under the Securities Act. The notes sold pursuant to Rule 144A under the Securities Act will have the same CUSIP number as, and will trade interchangeably with, the Existing Notes that were sold under Rule 144A. The notes sold pursuant to Regulation S under the Securities Act will have a different CUSIP number from, and will not trade interchangeably with, the Existing Notes that were sold under Regulation S.
This communication shall not constitute an offer to sell, or the solicitation of an offer to buy, any of these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
This communication includes statements regarding this private placement that may contain forward-looking statements within the meaning of federal securities laws. Endeavor believes that its expectations and forecasts are based on reasonable assumptions; however, no assurance can be given that such expectations and forecasts will prove to be correct. A number of factors could cause actual results to differ materially from the expectations and forecasts, anticipated results or other forward-looking information expressed in this communication, including risks and uncertainties regarding future results, capital expenditures, liquidity and financial market conditions, sufficiency of cash from operations, adverse market conditions and governmental regulations.