Finance - Buybacks
The outstanding 10% senior secured notes are due 2019. They were sold in a July 2014 private offering. The exchange offer will be open for at least thirty days.
There is $750 million, in aggregate principal amount, of the notes due 2019. The tender offer is scheduled to close May 27 unless extended or ended earlier.
Net proceeds from a public offering of $400 million, in aggregate principal amount, will fund purchase price and unpaid interest for the validly tendered 7.875% senior unsecured notes due 2018.
The exchange will fulfill registration obligations for the private placement notes. A registration statement was filed with the Securities and Exchange Commission. The offer is scheduled to close June 8.
The Denver company said it has sufficient cash on hand to fund the purchase price of the notes.
Despite the recent commodity price volatility, the company remains confident in its ability to maintain distributions, CEO says.
The Houston company enacted the program to allow to quickly and efficiently take advantage of any share price volatility in the future.
The offer was funded through proceeds from the parent company’s completed Nov. 14 issuance of $3 billion in senior notes.
The buyback is scheduled to close March 31, 2016, Eagle Rock said.
The program will be in place for 36 months, the company said.
Payments for repurchased shares will be funded through working capital, Sandridge said.