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Actionable news in WRES: Warren Resources, Inc.,

Warren Resources Announces Closing Of

The following excerpt is from the company's SEC filing.

Strategic Refinancing and Second Lien Term Loan

Exchange of $63.1 million of unsecured high yield notes (plus accrued interest) for $40.1 million of second lien debt, providing significant deleveraging

Additional second lien loan of $11 million in new money and first lien draw down of an additional $10 million, providing significant additional liquidity

NEW YORK, October 22, 2015 (GLOBE NEWSWIRE) Warren Resources, Inc. (Nasdaq:WRES) today announced the closing of a privately negotiated second lien loan transaction that provides Warren with approximately $11.0 million of new money and approxim ately $40.1 million of second lien term loans through the exchange of approximately $63.1 million of unsecured notes (plus accrued interest). In connection with this exchange, Warren also issued 4,000,000 shares of its common stock to the exchanging noteholders. Following this transaction and the previously announced first lien transaction in May 2015, a total of approximately $167.0 million in unsecured high yield notes will remain outstanding.

The new second lien loan has a term of five years and an annual interest rate of 12%, with interest payable

semi-annually in arrears. On the first three semi-annual interest payment dates, beginning with April 20, 2016, the Company may elect to pay up to 6% of such interest by capitalizing accrued and unpaid interest and adding the same to the principal amount of the second lien loans then outstanding. For the subsequent three semi-annual interest payment dates, beginning with October 20, 2017 and ending October 20, 2018, the Company may elect to pay up to 1.5% of such interest by capitalizing accrued and unpaid interest and adding the same to the principal amount of the second lien loans then outstanding.

In addition, in connection with closing of the second lien loan transaction, the Company is making a $10 million draw down, which, pursuant to the first lien agreement, the first lien lender has confirmed will be funded within the next ten business days. Accordingly, the Company will have approximately $20 million of incremental liquidity after giving effect to the second lien transaction, the additional first lien draw down and the payment of transaction costs associated therewith.

The Company also entered...


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