Finance - Buybacks
The units’ par value is $1,000 each plus unpaid accrued yield. The tender offer will be funded through cash on hand and funds under the revolving credit facility.
The transaction represents "another meaningful step forward in our efforts to improve our balance sheet," said James Bennett, Sandridge president and CEO.
Following these separate, privately negotiated transactions, about $94.2 million of the existing notes will remain outstanding with terms unchanged.
There are about 30.9 million issued and outstanding shares. Total may purchase about 1.5 million shares (5% of the total) between Sept. 30 of this year and Sept. 29, 2016.
Jefferies LLC and J.P. Morgan Securities LLC are placement agents for the debt exchanges. The price of Halcón’s common stock has fallen below New York Stock Exchange’s continued listing standard.
Aggregate principal amounts of Rosetta’s 5.625% notes due 2021, 5.875% notes due 2022, and $500 million of 5.875% notes due 2024 were validly tendered on early consent.
The exchange offer of $600 million of 6.125% senior notes due 2022 for an identical amount of outstanding, identical notes from a private placement closed July 9.
The 0.09% notes are due in 2022, and were previously issued in a private placement. They will be exchanged for an identical amount of new, identical registered notes.
The outstanding registered 6.125% registered notes will be exchanged for identical notes issued on Nov. 17, 2014 in a private placement. The exchange offer is scheduled to close July 9.
The 6.25% senior notes are due 2023 and will be exchanged for new, registered but otherwise identical notes. The exchange offer is scheduled to expire on July 1, unless extended.
The buyback has no fixed expiration. Payments will support working capital. Robert Herlin, CEO, said the company’s planned 2016 cash flow will support NGL plant in Louisiana’s Delhi Field.
Terms and conditions for the offer were made May 26. Offer will expire June 22. The 0.09% notes, due 2022, will be exchanged for new 0.12% second-lien notes due 2020.