•  
  •  
  •  
  •  
  •  
  • Untitled Document
    Untitled Document

    AEPB closes acquisition and notes offering

    American Energy Partners LP

    American Energy – Permian Basin LLC (AEPB), an affiliate of American Energy Partners LP (AELP), has closed on its acquisition of 63,000 net acres of leasehold in the southern Permian Basin, primarily in Reagan, Irion and Crockett counties, Texas, and associated gathering assets from affiliates of Denver, Colorado-based Enduring Resources II LLC for $2.5 billion. 

    Concurrently, AEPB has closed on its offering of $350 million of floating rate senior unsecured notes due 2019, $650 million of 7.125% senior unsecured notes due 2020, and $600 million of 7.375% senior unsecured notes due 2021, which priced on July 16. 

    A portion of the net proceeds from the senior notes offering was used to consummate the acquisition, while the remaining net proceeds will be used for general corporate purposes.

    AEPB has also entered into a reserves-based revolving credit facility as borrower with, among others, Bank of America NA, as administrative agent and collateral agent, Goldman Sachs Bank USA as lender and syndication agent, Wells Fargo Bank, National Association, as technical agent and co-documentation agent, and other lenders party thereto. The revolving credit facility provides AEPB with a credit limit subject to a borrowing base, determined by reference to the value of AEPB's oil and gas properties. 

    The initial borrowing base under the revolving credit facility is $500 million, which will remain in effect until the first regularly scheduled borrowing base redetermination in October. AEPB intends to use the borrowings under the revolving credit facility to fund ongoing capital expenditures and working capital requirements and for general corporate purposes.

    AEPB has also raised $1.145 billion in private equity capital, of which 75% was provided by lead investor The Energy & Minerals Group, which also holds a majority of the AEPB board seats. Additional equity capital was provided by First Reserve, AEPB's management team, and others. The transactions completed July 31 bring the total capital raised by AEPB to $3.25 billion, including borrowings available under the revolving credit facility.

    Goldman, Sachs & Co., Tudor, Pickering, Holt & Co., and Citi acted as financial advisors to AEPB on the acquisition. Sullivan & Cromwell LLP, Commercial Law Group PC, and Porter Hedges LLP acted as legal advisors to AEPB on the acquisition. Jefferies LLC acted as financial advisor to Enduring, and Latham & Watkins LLP acted as legal advisor to Enduring on the acquisition.

    Goldman, Sachs & Co. was the sole book-running manager for the notes offering. Sullivan & Cromwell LLP acted as legal advisor to AEPB in connection with the notes offering, and Simpson Thacher & Bartlett LLP acted as legal advisor to the initial purchasers.

     

     

    Did You Like This Article?

    Get a free subscription to Oil & Gas Financial Journal.

    Related Articles

    NZEC secures working capital facility for TWN licenses

    09/26/2014

    New Zealand Energy Corp. has executed a working capital facility agreement with New Dawn Energy Ltd. for up to $4 million (NZD 5 million).

    Hess Midstream Partners files registration statement for IPO

    09/26/2014 Hess Corp. reports that its wholly owned subsidiary, Hess Midstream Partners LP, has filed a registration statement on Form S-1 with the US Securities and Exchange Commission related to its propose...

    Ensco prices $1.25 billion offering of senior notes

    09/26/2014 Ensco plc has priced an underwritten offering of $1.25 billion principal amount of senior unsecured notes consisting of two series: $625 million principal amount of 4.50% senior unsecured notes due...

    SM Energy closes acquisition of North Dakota assets

    09/26/2014 SM Energy Co. has completed its acquisition of North Dakota Gooseneck assets from Baytex Energy USA. The cash paid at closing was $325 million as a result of normal closing adjustments to account f...

    CONE Midstream Partners prices upsized IPO

    09/25/2014

    CONE Midstream Partners has priced its initial public offering of 17,500,000 common units representing limited partner interests at a price to the public of $22.00 per common unit.

    More Oil & Gas Financial Articles

    NZEC secures working capital facility for TWN licenses

    Fri, Sep 26, 2014

    New Zealand Energy Corp. has executed a working capital facility agreement with New Dawn Energy Ltd. for up to $4 million (NZD 5 million).

    Hess Midstream Partners files registration statement for IPO

    Fri, Sep 26, 2014

    Hess Corp. reports that its wholly owned subsidiary, Hess Midstream Partners LP, has filed a registration statement on Form S-1 with the US Securities and Exchange Commission related to its proposed initial public offering of common units representing limited partner interests.

    Ensco prices $1.25 billion offering of senior notes

    Fri, Sep 26, 2014

    Ensco plc has priced an underwritten offering of $1.25 billion principal amount of senior unsecured notes consisting of two series: $625 million principal amount of 4.50% senior unsecured notes due 2024 priced at 99.864% of par, and $625 million principal amount of 5.75% senior unsecured notes due 2044 priced at 99.560% of par.

    SM Energy closes acquisition of North Dakota assets

    Fri, Sep 26, 2014

    SM Energy Co. has completed its acquisition of North Dakota Gooseneck assets from Baytex Energy USA. The cash paid at closing was $325 million as a result of normal closing adjustments to account for activity between the effective and closing dates.

    CONE Midstream Partners prices upsized IPO

    Thu, Sep 25, 2014

    CONE Midstream Partners has priced its initial public offering of 17,500,000 common units representing limited partner interests at a price to the public of $22.00 per common unit.

    Most Popular

    Oil & Gas Jobs

    Search More Job Listings >>
    Subscribe to OGFJ