Finance - Buy Backs
On Nov. 16, holders of about $624.8 million, or 99%, of the outstanding second-lien notes had tendered them for exchange.
Repurchases will be made from time to time on the open market at prevailing market prices or in negotiated transactions off the market. Program will run through June 30, 2016
The units’ par value is $1,000 each. The tender offer expires Dec. 10 unless extended, the company added. Tenders must be made on or before the expiration.
The units’ par value is $1,000 each plus unpaid accrued yield. The tender offer will be funded through cash on hand and funds under the revolving credit facility.
Finance - Debt
The redemption price will equal 104.063% of the aggregate principal amount of the notes, plus accrued and unpaid interest, if any, to such date.
Resolute will also work on the potential sale of its Reeves County midstream infrastructure assets to chip away at its more than $700 million of outstanding debt.
On Nov.16, there was about $28 million of cash and cash equivalents on hand and $305 in outstanding borrowings under the facility. Offering is scheduled to close Nov. 25.
Gleeson Van Riet, CFO, said that there is more than $450 million in liquidity. Company will fund the 2016 capex program through cash on hand and cash flow from operations.
Finance - Equity
As adjusted for the split, the amount of units was reduced to about 68.6 million outstanding, down from about 685.5 million; the $1.93 unit price was adjusted to $19.30 per unit.
The registered direct offering will not have an underwriter or placement agent. Net proceeds will support working capital and general corporate purposes. Offering is scheduled to close Nov. 25.
The offer will not be subject to a financing condition, will contain limited and customary conditions and will expire on Dec. 29 unless withdrawn or extended.
Gross proceeds totaled about CA$460 million. Net proceeds will support capex associated with the CA$6.5 billion suite of secured growth projects, debt payments and general corporate purposes.
Finance - Redemptions
A Manhattan federal judge ruled Chesapeake must pay bondholders an additional $379.7 million, after an appeals court ruled a series of senior notes was improperly redeemed at par, Bloomberg said.
On April 6, the proceeds will redeem US$700 million in long-term debt that matures in 2017 and CA$750 million in long-term debt that matures in 2018.
The redemption price will be 100% of the principal amount, plus accrued and unpaid interest to, but not including, the redemption date of $0.17 per $25.
The notes will be redeemed on Oct. 23, the company said.
Finance - Restructuring
According to Petrie co-founder Andrew Rapp, the firms began planning collaboration this summer and started pitching companies for business early this fall. They currently have a few assignments, Reuters reported.
"Blackhill Partners' long history of serving energy companies in difficult situations allows us to provide the leadership required in this highly complex bankruptcy," said managing director Jeff Jones.
While the company has about $5 billion in liquidity, Noble wants to be cash flow neutral in 2016 and continue to ramp up in its new Texas shale acquisitions.
Samson has arranged a deal with some of its lenders to eliminate debt and provide new equity investment, though owner KKR will lose its stake in the company.