BNP In The Market With Energy Deals

BNP Paribas last Monday launched syndication of a $650 million credit facility for Eagle Energy.

  • 18 Aug 2006
Email a colleague
Request a PDF

BNP Paribas last Monday launched syndication of a $650 million credit facility for Eagle Energy. The deal consists of a 364-day, $650 million uncommitted senior secured revolver, broken into a $300 million "A" tranche working capital facility and a $350 million tranche "B," which will be used for contango, according to a banker. Contango describes the slope of the price curve, where futures prices get progressively higher as maturities get longer, so the idea is to buy gas low and then sell it high later on. Pricing is LIBOR plus 1 1/2%. The credit is secured by inventory.

The company last turned to BNP for two, 364-day, $200 million revolvers set to mature in September. Houston-based Eagle Energy is an energy services provider for the United States and Canada. Calls to a spokesman were not returned.

BNP and Royal Bank of Scotland are also in the market with another energy deal, this one a $300 million second-lien term loan for Energy XXI. The term loan is priced at LIBOR plus 5 1/2%. The banks already completed funding on a $300 million revolver. The credit launched on Aug. 10 and was already 70% done by last Wednesday, according to a banker. The deal is not rated.

Berumuda-based Energy XXI is an independent oil and natural gas exploration and production company. Spokesmen could not be reached by press time.

  • 18 Aug 2006

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Bank of America Merrill Lynch (BAML) 7,026 25 11.95
2 Citi 6,449 21 10.96
3 BNP Paribas 5,093 18 8.66
4 Barclays 4,040 11 6.87
5 Lloyds Bank 3,615 14 6.15

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 1,505.59 4 23.86%
2 SG Corporate & Investment Banking 1,292.64 1 20.48%
2 Rabobank 1,292.64 1 20.48%
4 BNP Paribas 598.25 2 9.48%
5 TD Securities Inc 241.54 1 3.83%