Resolute Energy Corp. (NYSE: REN) said May 9 it launched a private debt offering to help fund the $160 million Delaware Basin acquisition the Denver-based company made earlier this year.

Resolute Energy is offering $125 million of its 8.5% senior notes due 2020. The company said it plans to use the net proceeds plus borrowings under its senior credit facility to finance its acquisition of Delaware Basin properties in Reeves County, Texas.

On March 3, Resolute Energy said it agreed to acquire producing and undeveloped properties covering 4,600 net acres in Reeves from CP Exploration II LLC and PetroCap CPX LLC, a subsidiary of PetroCap Partners II LP. The deal is expected to increase Resolute Energy's Reeves holdings by 28%.

At the time, Resolute Energy entered a commitment letter for a $100 million bridge financing facility with BMO Capital Markets to finance its acquisition.

The acquisition agreement contains certain customary termination rights for Resolute Energy and the sellers. The transaction will have an effective date of May 1.

Resolute Energy said if the Reeves acquisition is not consummated, the company will use the debt offering proceeds to repay outstanding borrowing under its credit facility and for general corporate purposes.