Jones Energy Inc. (NYSE: JONE) said Feb. 10 that investors agreed to purchase $250 million, in aggregate principal amount, of 9.25% senior unsecured notes from subsidiary Jones Energy Holdings LLC.
The notes are due 2023.
Jones Energy Holdings is a subsidiary of both Jones Energy and Jones Energy Finance Corp., the company added.
The investors are Magnetar Capital and affiliates of GSO Capital Partners LP. GSO is the credit platform of The Blackstone Group LP (NYSE: BX), the company added.
Net proceeds will repay revolving credit facility borrowings, Jones said.
Barclays Capital Inc. is the placement agent.
“Organizations with the liquidity to capitalize on opportunities have a significant advantage in low commodity price environments,” said Jonny Jones, the company’s founder, chairman and CEO.
“We are pleased to welcome Magnetar and GSO as strategic investors. This deal further solidifies our capital structure and allows us to execute on our long-term growth plan while providing us with the flexibility to take advantage of any opportunities that may arise.”
Austin, Texas-based Jones Energy Inc. operates in Oklahoma's Anadarko and Arkoma basins.
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