Halcón Resources Corp. (NYSE: HK) launched a tender offer to purchase for cash up to $425 million principal amount of the outstanding $850 million principal amount of its unsecured 6.75% senior notes due 2025 at 103% of par plus accrued interest, it said Sept. 7.
The tender offer will expire at 5 p.m. ET on Oct. 6, unless extended or earlier terminated. The tender offer for the notes was made pursuant to certain provisions of the indenture governing the 6.75% notes, as supplemented. The purchase of validly tendered 6.75% notes will be prorated in accordance with the indenture and the procedures of the Depository Trust Co. if the offer is oversubscribed.
Halcón also issued an irrevocable notice to redeem, on Oct. 7, all of its outstanding 12% second lien notes due 2022 in accordance with the terms of the indenture governing such notes. Halcón irrevocably deposited, with the U.S. Bank National Association, an amount of funds sufficient to fund the redemption thereby satisfying and discharging its’ obligations under the 12% notes.
The notice of redemption was sent to all registered holders of 12% notes on Sept 7. On or before Oct. 7, the 12% notes should be presented to the U.S. Bank National Association at the address set forth in the notice of redemption for the 12% notes.
Additionally, Halcón entered into an amended and restated senior secured revolving credit agreement with a $140 million borrowing base. As of June 30, Halcón's liquidity was about $700 million pro forma for the Williston Basin asset sale, the closing of various noncore asset sales, the redemption of all of the its’ 12% notes outstanding, the assumed tender of 50% of its 6.75% notes outstanding for purchase and the assumed exercise of Halcón’s option on the northern portion of its Monument Draw acreage.
The liquidity was based on $567 million of pro forma cash on hand, after pay down of all revolving credit facility borrowings, plus available borrowings under the undrawn senior secured revolving credit facility. The next borrowing base redetermination is scheduled for the spring of 2018.
Finally, Halcón closed the sale of its operated Williston Basin assets for $1.4 billion in cash, subject to certain customary closing adjustments, it said Sept. 7. The effective date of the divestiture was June 1.
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