Finance - Debt
The 5.00% convertible senior notes, due 2032, will be exchanged for issuance of $27.5 million of a new series of 5.00% convertible exchange senior notes due the same year.
W&T's interest in the Permian’s Yellow Rose Field produces about 3,000 boe/d, but the company has stopped drilling until commodity prices improve.
Gastar has drawn $65 million under the facility, resulting in $135 million of unused borrowing capacity. The next borrowing base redetermination is scheduled for May 1, 2016.
Average yield on U.S. junk-rated energy companies rose to more than 12% Aug. 24, Bank of America Merrill Lynch data said- the highest level since the financial crisis, Reuters said.
Jefferies LLC and J.P. Morgan Securities LLC are placement agents for the debt exchanges. The price of Halcón’s common stock has fallen below New York Stock Exchange’s continued listing standard.
Almost all of the weakness was from the U.S. market, where BMO, Canada's fourth-largest bank, has a significant presence. U.S. energy companies tend to have more debt, Reuters said.
Citigroup Global Markets Inc., Mizuho Securities USA Inc., Mitsubishi UFJ Securities (USA) Inc. and UBS Securities LLC are joint book-running managers. Net proceeds will repay outstanding commercial paper program borrowings.
The company is targeting recompletions as a low-cost production method while cutting its capex in 2016 by more than 75%.
Petrobras’ debt and weak finances limit its ability to finance 30% of all new subsalt projects and run them as operator, Reuters said. This lessens subsalt development chances, critics say.
WPX Energy is nearing a close to its $2.8 billion Permian deal, with the company saying it intends to wrap up the deal before the end of August.
Miller Energy, already fending off bankruptcy concerns, said its COO has resigned in the wake of the SEC investigation and that it is trying right itself with divestments and a loan.
They are offered in addition to $500 million of identical notes sold in September 2014. All will be a single class of debt securities. Offering will close on Aug. 10.