EP Energy Completes $704 Mln IPO

(RTTNews) - EP Energy Corp. (EPE) said Thursday that it has completed its initial public offering of 35.2 million shares of its common stock at a public offering price of $20.00 per share.

EP Energy's common stock commenced trading on the New York Stock Exchange on January 17.

The underwriters have a 30-day option to purchase from EP Energy up to an additional 5.28 million shares of common stock at the public offering price, less the underwriting discounts and commissions.

Net proceeds to EP Energy from the sale of the shares of its common stock, after deducting the underwriting discounts and commissions and estimated offering and other expenses, are about $664 million, or $765 million if the underwriters' option to purchase additional shares is exercised in full.

On the closing date, EP Energy used the net proceeds to satisfy and discharge all of the outstanding 8.125%/8.875% Senior PIK Toggle Notes due 2017 issued by its subsidiaries, EPE Holdings LLC and EP Energy Bondco Inc., including the redemption premium and the accrued and unpaid interest on those notes, repay certain outstanding borrowings under the reserve-based revolving credit facility and pay a fee under a management fee agreement with certain affiliates of EP Energy's sponsors.