Halcón Resources Corporation (HK) (“Halcón” or the “Company”) today announced the expiration and final results of its previously announced exchange offer to certain eligible holders of its outstanding unsecured debt securities listed in the table below (the “Existing Notes”) for up to $150 million of a new issue of 12.0% Second Lien Senior Secured Notes due 2022 (the “New Notes”).
The Company has been informed by the information agent for the exchange offer that, as of 11:59 p.m., New York City time, on December 17, 2015 (the “Expiration Date”), a total of approximately $289.6 million aggregate principal amount of Existing Notes were validly tendered and not validly withdrawn. As a result, approximately $112.8 million of New Notes will be issued upon closing the exchange offer, which is expected to occur on or about December 21, 2015. The aggregate principal amount of each series of the Existing Notes that were validly tendered and not validly withdrawn as of the Expiration Date is specified in the table below:
To Exchange Offer
Early Tender Period (1)
Early Tender Period (2)
|40537QAB6||9.75% Senior Notes due 2020||$||462,214,000||$||116,359,000||$||185,000|
|40537QAD2||8.875% Senior Notes due 2021||$||493,671,000||$||136,844,000||$||883,000|
|40537QAF7||9.25% Senior Notes due 2022||$||93,995,000||$||34,301,000||$||1,000,000|
|(1) Represents valid tenders submitted and accepted at 39% of par.|
|(2) Represents valid tenders submitted and accepted at 37% of par.|
Floyd C. Wilson, Chairman and Chief Executive Officer, commented, “Once this exchange offer closes, and as a result of the steps we have taken this year to improve our balance sheet, we will have reduced our long-term debt by more than $1 billion and lowered our annual cash interest expense by more than $50 million. We plan to continue being proactive in our approach to strengthening the balance sheet by exploring additional ways to improve our leverage profile while at the same time ensuring we have adequate liquidity in this challenging environment.”
The New Notes have not been registered under the Securities Act, or any state securities laws and, unless so registered, may not be offered or sold in the United States except pursuant to an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. The exchange offer was not made to holders of Existing Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. This press release does not constitute an offer to sell or the solicitation of an offer to purchase any securities.
Reverse Stock Split Effective Date Change
The New York Stock Exchange has informed the Company that its rules allow the effective time of the previously announced reverse stock split for trading purposes can be as early as the market opening on Monday, December 28, 2015, which is a week earlier than originally planned. As such, the one-for-five (1:5) reverse split of Halcón’s issued and outstanding common stock will be effective after the market closes on December 24, 2015 and the Company’s common stock will begin trading on a split-adjusted basis when the market opens on December 28, 2015.
About Halcón Resources
Halcón Resources Corporation is an independent energy company engaged in the acquisition, production, exploration and development of onshore oil and natural gas properties in the United States.