Market Overview

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


Resolute Energy Corporation (NYSE: REN) announced today that it has launched an offering for an additional $150 million in principal amount of its 8.50% senior notes due 2020 ("Senior Notes"). The offering of the Senior Notes, which is subject to market availability as well as other conditions, will be made only to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the "Securities Act") and non-U.S. persons in transactions outside the United States in reliance on Regulation S under the Securities Act. The notes will be general unsecured obligations of the Company and guaranteed on a senior basis by the Company's existing subsidiaries.

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. However, the offering of Senior Notes is not conditioned on such acquisition. If this 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.

Posted-In: News Financing


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