Halcón Resources Corp. (HK) will issue about $1.02 billion, in aggregate principal amount, of new senior notes in exchange for about $1.57 billion, in aggregate principal amount, of its outstanding unsecured debt securities, the company said Aug. 27.
The exchange is private, and the 13% third-lien senior notes are due 2022. The outstanding securities consist of $497.2 million of 9.75% unsecured notes due 2020; $774.7 million of 8.875% unsecured notes due 2021; and $294.3 million of its 9.25% unsecured notes due 2022.
The debt exchange is part of an effort to deleverage the balance sheet, the company said. The exchange is scheduled to close in 10 business days, subject to closing conditions including an amendment to its senior secured revolving credit facility. The amendment will lower the borrowing base to $850 million. Due to the fall redetermination, the borrowing base will likely remain at $850 million, the company added.
Jefferies LLC and J.P. Morgan Securities LLC are placement agents for the debt exchanges.
Halcón also said that on Aug. 25, it received a notice from the New York Stock Exchange (NYSE) that the price of its common stock had fallen below the continued listing standard. The standard is not less than $1 per share for 30 consecutive trading days.
Halcón can regain compliance if the price per share and the 30-day trading average are at least $1 for the six-month period following the notice. During this period, Halcón’s stock will continue trading on NYSE, subject to other requirements. Halcón said it will notify the NYSE that it intends to correct the compliance issue.
The NYSE notification does not affect the company’s business operations or its Securities and Exchange Commission reporting requirements.
Houston-based Halcón Resources Corp. produces and develops domestic natural gas and oil.
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