Finance - Debt
Net proceeds from the private placement of senior notes, along with revolving credit facility borrowings, will buy back notes due 2020 and 2021. Tender offers for them began March 9.
Net proceeds from the private placement of senior notes are expected to total about $389.3 million, and they will support capex and other general corporate purposes.
Net proceeds are expected to total $793.8 million. They will repay outstanding commercial paper program amounts and support general partnership purposes.
After spending more than $5 billion in the Marcellus and buying assets from Statoil and WPX, the company plans to divest up to $800 million to overcome a cash flow gap.
The loan was used to repay $150 million of borrowings. The remainder of the loan will support funds for general corporate purposes.
With acreage the Barnett Shale, Delaware Basin and Horn River Basin, the company wants to reorganize and is continuing to pay vendors, maintain payroll.
Sabine said March 16 that it is considering “strategic alternatives” to its capital structure following legal action by bondholders seeking $584 million. The company has been served a notice of default by its lender.
U.S. Treasuries and other global financial assets benefited from the last decade’s rising oil prices; now, exporters use them to hedge the drop in their oil income, Reuters said.
About $247.1 million in net proceeds is expected, and they will reduce outstanding revolving credit facility borrowings.
The facility expires in January 2019, and its commitments were increased to $2.4 billion.
The notes are due in 2023.