Halcón Resources Announces Expiration and Final Results of Debt Exchange Offer
December 18 2015 - 4:15PM
Halcón Resources Corporation (NYSE:HK) (“Halcón” or the “Company”)
today announced the expiration and final results of its previously
announced exchange offer to certain eligible holders of its
outstanding unsecured debt securities listed in the table below
(the “Existing Notes”) for up to $150 million of a new issue of
12.0% Second Lien Senior Secured Notes due 2022 (the “New
Notes”).
The Company has been informed by the information
agent for the exchange offer that, as of 11:59 p.m., New York City
time, on December 17, 2015 (the “Expiration Date”), a total of
approximately $289.6 million aggregate principal amount of Existing
Notes were validly tendered and not validly withdrawn. As a
result, approximately $112.8 million of New Notes will be issued
upon closing the exchange offer, which is expected to occur on or
about December 21, 2015. The aggregate principal amount of
each series of the Existing Notes that were validly tendered and
not validly withdrawn as of the Expiration Date is specified in the
table below:
|
|
|
|
|
CUSIP |
Series |
Aggregate Principal Amount Outstanding Prior To
Exchange Offer |
Aggregate Principal Amount Tendered During
Early Tender Period (1) |
Aggregate Principal Amount Tendered After Early
Tender Period (2) |
40537QAB6
|
9.75% Senior Notes due
2020 |
$ |
462,214,000 |
|
$ |
116,359,000 |
|
$ |
185,000 |
|
40537QAD2 |
8.875% Senior Notes due
2021 |
$ |
493,671,000 |
|
$ |
136,844,000 |
|
$ |
883,000 |
|
40537QAF7 |
9.25% Senior Notes due
2022 |
$ |
93,995,000 |
|
$ |
34,301,000 |
|
$ |
1,000,000 |
|
|
|
|
|
(1)
Represents valid tenders submitted and accepted at 39% of
par. |
(2)
Represents valid tenders submitted and accepted at 37% of
par. |
|
Floyd C. Wilson, Chairman and Chief Executive Officer,
commented, “Once this exchange offer closes, and as a result of the
steps we have taken this year to improve our balance sheet, we will
have reduced our long-term debt by more than $1 billion and lowered
our annual cash interest expense by more than $50 million. We plan
to continue being proactive in our approach to strengthening the
balance sheet by exploring additional ways to improve our leverage
profile while at the same time ensuring we have adequate liquidity
in this challenging environment.”
The New Notes have not been registered under the
Securities Act, or any state securities laws and, unless so
registered, may not be offered or sold in the United States except
pursuant to an applicable exemption from the registration
requirements of the Securities Act and applicable state securities
laws. The exchange offer was not made to holders of Existing
Notes in any jurisdiction in which the making or acceptance thereof
would not be in compliance with the securities, blue sky or other
laws of such jurisdiction. This press release does not
constitute an offer to sell or the solicitation of an offer to
purchase any securities.
Reverse Stock Split Effective Date
Change
The New York Stock Exchange has informed the
Company that its rules allow the effective time of the previously
announced reverse stock split for trading purposes can be as early
as the market opening on Monday, December 28, 2015, which is a week
earlier than originally planned. As such, the one-for-five (1:5)
reverse split of Halcón’s issued and outstanding common stock will
be effective after the market closes on December 24, 2015 and the
Company’s common stock will begin trading on a split-adjusted basis
when the market opens on December 28, 2015.
About Halcón
Resources
Halcón Resources Corporation is an independent
energy company engaged in the acquisition, production, exploration
and development of onshore oil and natural gas properties in the
United States.
Contact:
Scott M. Zuehlke
VP, Investor Relations
Halcón Resources
(832) 538-0314
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