Denver-based Resolute Energy Corp. (NYSE: REN) closed its private placement of an additional $150 million in principal amount of its 8.5% senior notes due 2020.
The senior notes were issued at 101.25% of par, resulting in a yield to maturity of 8.268%.
The net proceeds of the offering were about $147.8 million. Resolute intends to use the net proceeds to fund its pending acquisition of Permian Basin oil and gas assets for about $120 million, to repay indebtedness under its revolving credit facility, which matures in April 2017, and for general corporate purposes. If the pending acquisition is not consummated, Resolute plans to use the net proceeds to repay indebtedness under its revolving credit facility, to develop its existing assets, and for general corporate purposes.
The senior notes are general unsecured senior obligations of the company and guaranteed on a senior unsecured basis by the company's existing subsidiaries.