Finance - Debt
The company, which has more than $9 billion in debt, said on May 23 it issued or agreed to issue about 37.1 million shares between May 16 and May 23 in exchange for senior notes worth about $166 million.
Despite Vanguard’s loss of the Scoop/Stack acreage and a pared-back borrowing base, the company forecasts it will generate a substantial amount of excess cash flow in 2016.
Energy companies across Canada and the U.S. have met with their banks recently to determine how much debt they can continue to hold as part of a biannual process, Reuters said.
Harry McMillan, Cicerone's managing member on behalf of the CE McMillan Family Trust, said on May 19 that the company’s funding commitment to Rangeford would increase based on Thomas E. Lindholm's appointment as CEO.
The notes will be secured by a first priority security interest in substantially all of the assets of CCH and its subsidiaries, and by a pledge of all of the equity interests in CCH.
Argent Energy Trust owns, operates and manages oil and gas properties located primarily in South Texas' Eagle Ford Shale and Wyoming's Powder River Basin.
This extension will give Greenfields Petroleum International Co. Ltd. time to complete the acquisition of the balance of the Bahar Energy Ltd. shares that Greenfields does not currently own.
The company also settled its 3.25% convertible senior notes due 2016, paying the principal balance plus cash for fractional shares totaling about $115 million, , utilizing proceeds from its March equity offering. PDC also issued 792,406 common shares.
A plunge in global crude prices has now pushed at least 28 publicly traded North American oil and gas producers to seek bankruptcy protection since early 2015, according to a Reuters review of regulatory filings.
Morgan Stanley & Co. LLC is the lead dealer manager and SunTrust Robinson Humphrey Inc. is the co-dealer manager. D.F. King & Co. Inc. is the tender agent and the information agent.
The 134-year-old Radnor, Pa.-based company is following in the footsteps of several other E&Ps, including the Linn Energy family of companies which filed for bankruptcy protection only a day earlier.
The special committee will evaluate options such as divestitures and restructuring of its gathering, transportation and certain other contracts, the company said.