Finance - Debt
Notes will be issued in separate series. Net proceeds will pay about $1.02 billion in intercompany debt between Columbia and parent company NiSource Inc., and dividend concerning Columbia’s planned separation.
There is $750 million, in aggregate principal amount, of the notes due 2019. The tender offer is scheduled to close May 27 unless extended or ended earlier.
After three years and $2.2 billion spent buying Eagle Ford, Permian and Arkoma Basin assets, Atlas plans to use $35 million in proceeds to pay down debt.
The company, struggling after a $665 million deal fell apart, is also selling Liberty County, Texas, oil and gas leases it owns and operates on about 680 net acres.
While some oil and gas explorers have been shut out of capital markets altogether, stabilizing oil prices are prompting investors to lend to those with the best shots at survival.
SandRidge Energy Inc. swapped shares for two classes of notes held by single investor. Holder will receive stock for combined $50 million of 7.5% notes and 8.125% notes, Bloomberg said.
Patrick Fleury, managing director at GSO Capital Partners LP, Blackstone’s distressed credit unit, told Debtwire Investors Summit that the Bakken, Eagle Ford, Permian Basin are performing assets, Bloomberg said.
Net proceeds from a public offering of $400 million, in aggregate principal amount, will fund purchase price and unpaid interest for the validly tendered 7.875% senior unsecured notes due 2018.
Net proceeds of about $184.9 million will repay outstanding revolving credit facility borrowings and support other general corporate purposes. The offering is scheduled to close May 18.
American Eagle Energy Corp. (AMZG) filed for bankruptcy protection in Colorado after the slump in crude prices prevented it from servicing debt it took on less than a year ago, Bloomberg reported May 11.
Proceeds will be used to repay amounts borrowed under its revolving credit facility and for general partnership purposes.
The exchange will fulfill registration obligations for the private placement notes. A registration statement was filed with the Securities and Exchange Commission. The offer is scheduled to close June 8.