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Stock Market & Financial Investment News

News Breaks
July 7, 2014
06:14 EDTWRESWarren Resources acquires Marcellus assets for $352M
Warren Resources announced that it has executed a purchase and sale agreement to acquire essentially all of the Marcellus assets of Citrus Energy Corporation and two additional working interest owners for $352.5M. As part of the total consideration, Warren will issue $40M in Warren common stock priced at $6.00 per share, with the remainder to be funded through fully committed debt financing. This acquisition provides Warren with a substantial new basin platform in the prolific Marcellus Shale and adds a new core area to Warren's existing California oil and Wyoming natural gas assets. The assets are currently producing approximately 82M net cubic feet per day of natural gas, as of June. Estimated net proved reserves, as of the July 1 economic effective date, totaled approximately 208.3B cubic feet, 55% proved developed, as estimated by Netherland, Sewell & Associates, Inc., Warren's independent petroleum engineering firm. To finance the purchase and complete the transaction, Warren has obtained committed financing from Bank of Montreal and its affiliates, including an increase in its senior secured credit facility from $300M to $750M, along with an increase in the borrowing base from $175M to $225M in conjunction with the acquisition. Additionally, Bank of Montreal and BMO Capital Markets have provided the Company a commitment for $250M in the form of a senior unsecured bridge loan, which is expected to remain unutilized as the company plans to put in place permanent financing before the anticipated closing date in early August.
News For WRES From The Last 14 Days
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May 26, 2015
12:55 EDTWRESWarren Resources announces closing of a $250M strategic refinancing
Warren Resources announced the closing of a $250M strategic refinancing with funds sponsored by Franklin Square Capital Partners and sub-advised by GSO Capital Partners, the credit division of Blackstone, providing Warren with both liquidity and a platform to continue its growth initiatives.The first lien term loan provides Warren with $202.5M of new money, including $172.5M borrowed at closing for working capital and to repay Warren's existing revolving credit facility, a $30M delayed draw first lien commitment, and $47.2M of additional first lien term loans through the exchange of $69.6M of unsecured notes at an exchange price of 65% of par. The new first lien loan has a term of five years, and a coupon rate of LIBOR plus 8.5%, with a LIBOR floor of 1%. The transaction also allows Warren to exchange additional unsecured debt at a discount into second lien debt, subject to incurrence tests. As of May 26,, Warren has $14.7M of cash on hand. "Today we are extremely pleased to announce a new strategic refinancing that not only enhances the financial health of the company, but also provides Warren with the ability to pursue acquisitions and continue our strategy of transformational growth. GSO is a highly respected institution that can provide significant resources as we acquire and develop oil and natural gas assets," said Lance Peterson, interim CEO of Warren.

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