Resolute Energy Corp. (NYSE: REN) priced its private placement of an additional $150 million in principal amount of its 8.5% senior notes due 2020, the Denver-based company announced.
The senior notes will be issued at 101.25% of par. The offering is expected to close on December 10, 2012, subject to customary closing conditions. The senior notes will be general unsecured senior obligations of the company and guaranteed on a senior unsecured basis by the company's existing subsidiaries.
Resolute intends to use the net proceeds to fund its pending acquisition of Permian Basin oil and gas assets for approximately $120 million, to repay indebtedness under its revolving credit facility, which matures in April 2017, and for general corporate purposes. However, if the pending acquisition is not completed, 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.