DENVER, Dec. 5, 2017 /PRNewswire/ -- Bill Barrett
Corporation (the "Company") (NYSE: BBG) announced today that it has
agreed to a privately negotiated exchange with certain holders (the
"Exchanging Holders") of the Company's 7.0% Senior Notes due 2022
(the "7.0% Notes") pursuant to which the Exchanging Holders have
agreed to exchange $50 million
aggregate principal amount of the 7.0% Notes for a number of newly
issued shares of the Company's common stock, plus cash in respect
of accrued and unpaid interest (the "Debt Exchange"). The number of
shares exchanged will be calculated based on the volume-weighted
average price of trading on December 6,
2017 and the value of the bonds will be at 102% of par.
Closing of the Debt Exchange is subject to certain conditions, and
is expected to occur after the supplemental indentures (the
"Supplemental Indentures") effecting the Proposed Amendments (as
defined below) to the indentures governing the Senior Notes are
executed and become effective.
In addition, the Company expects to launch consent solicitations
(the "Consent Solicitations") on or about December 7, 2017 pursuant to which it will seek
consents from holders of the 7.0% Notes and holders of the
Company's 8.75% Senior Notes due 2025 (together with the 7.0%
Notes, the "Senior Notes") to amend each of the indentures
governing the Senior Notes to, among other things, amend the
defined term "Change of Control" in each of the indentures to
provide that the Company's previously announced transaction with
Fifth Creek Energy, LLC and transactions relating thereto will not
constitute a Change of Control thereunder (collectively, such
amendments, the "Proposed Amendments"). To become effective with
respect to any series of Senior Notes, the Proposed Amendments must
be approved by at least a majority of the then-outstanding
aggregate principal amount of the Senior Notes governed by the
applicable indenture (the "Requisite Consents").
The Company expects to pay a consent fee equal to $2.50 per $1,000
principal amount of Senior Notes for consents validly delivered and
not validly revoked upon the execution and effectiveness of the
applicable Supplemental Indenture.
Certain holders holding a majority of the outstanding aggregate
principal amount of each series of Senior Notes have agreed to
deliver consents in the Consent Solicitations with respect to all
Senior Notes held thereby. As such, the Company expects that upon
delivery of such consents, the consents necessary to achieve the
Requisite Consents will be obtained.
Forward-Looking Statements
All statements in this press release, other than statements of
historical fact, are forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Words such
as expects, forecast, guidance, anticipates, intends, plans,
believes, seeks, estimates and similar expressions or variations of
such words are intended to identify forward-looking statements
herein; however, these are not the exclusive means of identifying
forward-looking statements.
These and other forward-looking statements in this press release
are based on management's judgment as of the date of this release
and are subject to numerous risks and uncertainties. Actual results
may vary significantly from those indicated in the forward-looking
statements. Please refer to the Company's Annual Report on Form
10-K for the year ended December 31, 2016 filed with the SEC,
and other filings, including its Current Reports on Form 8-K and
Quarterly Reports on Form 10-Q, all of which are incorporated by
reference herein, for further discussion of risk factors that may
affect the forward-looking statements. The Company encourages you
to consider the risks and uncertainties associated with projections
and other forward-looking statements and to not place undue
reliance on any such statements. In addition, the Company assumes
no obligation to publicly revise or update any forward-looking
statements based on future events or circumstances.
ABOUT BILL BARRETT CORPORATION
Bill Barrett Corporation (NYSE: BBG), headquartered in
Denver, Colorado, develops oil and
natural gas in the Rocky Mountain region of the United States. Additional information
about the Company may be found on its website
www.billbarrettcorp.com.
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SOURCE Bill Barrett Corporation