Berry Petroleum has priced an underwritten public offering of $125 million aggregate principal amount of senior notes due 2014, which will bear interest at a rate of 10¼% per year. The notes are being sold at 104.75% of par, which equates to an effective yield to maturity of approximately 9.0%. Berry expects to close the sale of the notes on August 14, 2009, subject to the satisfaction of customary closing conditions.
The notes will be additional notes under an indenture, as supplemented by a supplemental indenture, pursuant to which Berry issued $325 million principal amount of 10¼% senior notes due 2014 on May 27, 2009. The notes and the previously issued $325 million principal amount of notes will be treated as a single series of debt securities under the indenture. The offering is being made under Berry’s effective shelf registration statement as filed today with the Securities and Exchange Commission (SEC).
Berry intends to use the net proceeds of the offering to reduce outstanding borrowings under its senior secured revolving credit facility.
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