Memorial Production Partners LP (Nasdaq: MEMP) priced the offer with its wholly owned subsidiary, Memorial Production Finance Corp., of $300 million 7.625% senior unsecured notes due 2021 at 97% of principal amount.
The notes will yield to worst of 8.163%. The offering is expected to close on Oct. 10, subject to customary closing conditions.
The notes are being offered as additional notes under the same indenture pursuant to which their existing $400 million 7.625% notes due 2021 were issued. The existing notes and the additional notes will be treated as a single class under the indenture.
Net proceeds will be used to repay a portion of the outstanding borrowings under its revolving credit facility and 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, may not be offered or sold in the U.S. 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. MEMP plans to offer and sell the securities only to qualified institutional buyers and to non-U.S. persons in transactions outside the U.S. pursuant to the Securities Act.
Memorial Production Partners LP, through its subsidiary, Memorial Production Operating LLC, engages in the acquisition, development, exploitation, and production of oil and natural gas properties. The company is based in Houston.