Legacy Reserves LP, Midland, Texas (Nasdaq:LGCY), and its wholly owned subsidiary Legacy Reserves Finance Corp. has announced that they intend to offer, subject to market and other conditions, $300 million in aggregate principal amount of senior unsecured notes due 2020.
The notes will be offered and sold to qualified institutional buyers in the United States pursuant to Rule 144A under the Securities Act of 1933, as amended, and outside the United States pursuant to Regulation S under the Securities Act.
The notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws.
Legacy intends to use the net proceeds of this offering to fund a portion of the $520 million purchase price of its pending acquisition of oil and natural gas properties in the Permian Basin from Concho Resources Inc. Prior to funding the pending acquisition, all of the net proceeds of the notes offering will be placed in an escrow account. If the acquisition is not closed by January 31, 2013 or the acquisition agreement is terminated prior to the consummation of the acquisition, the notes will be redeemed at 100% of the principal amount, plus accrued and unpaid interest to the redemption date.
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