Finance - Debt
Under the terms of the amended facility, EPO may borrow up to $1.5 billion, which may be increased by up to $200 million to $1.7 billion.
The notes will pay semiannual interest and will be convertible into cash, common shares or a blend of cash and shares. They will mature on Sept. 15, 2023.
The Radnor, Pa.-based company is focused on maintaining a core position in the Eagle Ford Shale. Currently, Penn Virginia operates 296 active horizontal Eagle Ford wells plus 36 outside-operated wells.
The net proceeds will fund part of the cash consideration for the acquisition of two privately held companies managed by Kimmeridge Energy Management Co. and pay related fees and expenses.
The net proceeds will repay existing short-term debts. The offering is expected to close on Sept.13, 2016.
The offering is expected to close on Sept. 13.
BofA Merrill Lynch, J.P. Morgan and Wells Fargo Securities are joint book-running managers.
J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Mizuho Securities USA Inc. and RBC Capital Markets LLC are joint book-running managers.
"This is the first time I have seen someone trying to sell [this kind of paper]," one market strategist told IFR.
Enbridge is expanding its North American pipeline network, which carries the bulk of Canadian crude oil exports to the U.S., Reuters reported.
The tenders will be funded through the net proceeds from previously completed asset sales and financing transactions, and will reduce outstanding debt.
The Canadian oil producer said it expects to implement and complete the restructuring transaction late in the third quarter or early in the fourth quarter of 2016.