Goodrich Petroleum Corp. (NYSE: GDP) announced Feb. 27 new debt and equity financings and an amendment to its credit facility.
The Houston company entered into an agreement to issue and sale $100 million of its 8% senior secured notes due 2018 (second lien notes), together with warrants to purchase up to 4.88 million shares of common stock.
The common stock will be sold at an exercise prices of $4.66 per share, which is a 10% premium to the closing stock price on Feb. 26.
Through the financings, the company said it has increased its liquidity and has the ability to issue an additional $75 million of second lien notes in the future.
Additionally, the company's first lien credit facility maturity has been extended to February 2017. The covenants amended to provide additional flexibility. The borrowing base has also been redetermined to $200 million and will be reduced to $150 million upon closing of the sale of the second lien notes.
The company said it expects to finance the remainder of its 2015 capex budget with cash flow from operations and available capacity on its first lien credit facility.
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