Quicksilver Resources Inc. (NYSE: KWK) launched a loan syndication for US $600 million senior secured second priority term loan facility maturing in 2019.
There can be no assurance Quicksilver will receive commitments for the senior loan facility or as to the terms of such facility. In addition, the closing of the senior loan facility will be subject to customary conditions and there can be no assurance that the closing will occur.
Quicksilver also announced a cash tender offer and consent solicitation for the purchase of any and all of its outstanding 2015 senior notes, 2016 senior notes, and 2016 senior subordinated notes and to amend the indentures related to each series of notes to eliminate substantially all of the restrictive covenants and certain events of default contained in the indentures.
The tender offer is subject to the satisfaction or waiver of a number of conditions, including the completion of one or more debt financing transactions in an amount which is sufficient to purchase the notes tendered and pay the related consent payments, if any, and fees and expenses in connection therewith.
In addition, Quicksilver announced a solicitation of consents to certain proposed amendments to the indenture related to its 9 1/8% senior notes due 2019, to permit Quicksilver to consummate the tender offer with respect to the notes by incurring debt that ranks equal in priority to, but with a longer maturity than, the 2019 senior notes, to permit any such refinancing to be excluded from the limitation on restricted payments covenant in such indenture and to give Quicksilver flexibility to incur secured and unsecured indebtedness pursuant to offerings of debt securities.
If consummated, the proceeds of the senior loan facility are expected to be used, together with any other debt financing transactions Quicksilver may undertake, to purchase the notes in the tender offer and pay the related consent payments, if any, and fees and expenses in connection therewith.
Quicksilver is currently contemplating an offering of senior unsecured notes in an aggregate principal amount up to US $675 million and an offering of senior second priority secured notes in an aggregate principal amount up to US $200 million, subject to market conditions, in addition to the senior loan facility. There can be no assurance that Quicksilver will be able to complete any offering of notes.
Quicksilver Resources Inc. is an independent energy company engaged in the acquisition, exploration, development, production, and sale of natural gas, NGLs, and oil in North America. The company is headquartered in Fort Worth, Texas.
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