$125m (+18.75m) sen unsec cb coming tonite from CS/BARC. Terms:5y 1¾-2¼ up 32½-37½%, full pctns. UOP=Repay revolv/acq/drilling dev & acq.$452m E&P w/85k net acres based in the Williston Basin (NDakota/Montana).75% of area operated & 17 wells drilled 2 date Avg daily Production in 4q13=2430 boe/d w/14 guidance 3550 boe/d (87% oil/13% gas). PFcash=213.75mm w/288.75m liq, LTMebitda=20m w/FY14E 58m (& lex exp 4.98x) & FY15E 98m. Co has exp CAPEX 307m in FY14 w/land acq & drilling. We’d use L+650 for 5y. ADV=690k, no leaps, 1y 100d=74%. 250d=48. Again w/these most small credits w/-ve gamma concerns we’d cap vol @ 35%. Theo=97.7/99.6/101.6.
E&P/energy space has been under issued & directional investors will want exposure 2 Bakken assets h/ever pricing is tight.