Goodrich Petroleum Corp. opened offers to exchange common stock priced at 20 cents each for all unsecured notes and all shares of preferred stock, the company said Jan. 26.
Also, Goodrich will exchange its second-lien notes for identical new second-lien notes on which the interest can be paid in cash or in kind or deferred until maturity. Both exchanges of notes, if successful, would eliminate between $213 million and $224.2 million in unsecured senior debt and $29.8 million to $31.4 million in cash interest payment obligations per year, preserving near-term liquidity.
These offers are the recapitalization plan, the company said.
Per $1,000 principal amount of 8.875% senior notes due 2019, 800.635 common shares will be exchanged. Per the same amount of 3.25% convertible senior notes due 2026, 800.635 shares will be exchanged. Per the same amount of 5.00% notes due 2029, 800.635 shares will be exchanged. Per the same amount of 5.00% notes due 2032, 800.635 shares will be exchanged. Per the same amount of 5.00% notes due 2032, these unsecured notes will be exchanged for 1601.270 common shares.
The higher exchange ratio for the 5.00% notes is due to a previous exchange at a 50% discount, the company said.
For the share offerings, 8.899 common shares will be exchanged for the 5.375% Series B stock; the 4.449 common shares per depositary share represent 0.001 share of the Series C preferred stock; the 4.449 common shares each represent 0.001 share of the Series D preferred stock; the 5.188 shares each represent 0.001 share of the Series E preferred stock.
Georgeson Inc. is the information agent and American Stock Transfer & Trust Co. LLC is the exchange agent.
The offers will expire on Feb. 24.
Goodrich Petroleum Corp. is based in Houston.
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