Resolute Energy Corporation Announces Closing Of $150M Add-On Offering of 8.50% Senior Notes Due 2020

Resolute Energy Corporation

announced today the closing of its private placement of an additional $150 million in principal amount of its 8.50% senior notes due 2020 ("Senior Notes"). The Senior Notes were issued at 101.25% of par, resulting in a yield to maturity of 8.268% (and a yield to worst of 8.205%). The Senior Notes are general unsecured senior obligations of the Company and guaranteed on a senior unsecured basis by the Company's existing subsidiaries. The net proceeds of the offering, after reflecting initial purchaser discounts and commissions, and offering expenses, were approximately $147.8 million. Resolute intends to use the net proceeds from the Senior Notes offering to fund its pending acquisition of Permian Basin oil and gas assets for approximately $120 million, to repay indebtedness under its revolving credit facility, which matures in April 2017, and for general corporate purposes. If the pending acquisition is not consummated, Resolute plans to use the net proceeds of the sale of the Senior Notes to repay indebtedness under its revolving credit facility, to develop its existing assets and for general corporate purposes. The Senior Notes have not been registered under the Securities Act, or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and state securities laws. This announcement shall not constitute an offer to sell or a solicitation of an offer to buy the Senior Notes nor shall there be any sale of the notes in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.