Midland Basin E&P HighPeak Energy Inc. said June 12 that it will offer $575 million in senior notes with the intent to repay an outstanding debt of $475 million and reduce other borrowings on its credit revolver.
The $475 million HighPeak intends to retire consists of senior notes due in February 2024 at 10% and November 2024 at 10.625%.
The $575 million offering, a private placement, would raise money not due until 2028. The notes will not be offered under the Securities Act but will be available to “qualified institutional buyers” under Rule 144A and Regulation S of the act.
In connection with the pricing of the offering, HighPeak intends to enter into an amended credit agreement with Wells Fargo Bank, National Association, according to Securities and Exchange Commission filings. The amendment will, among other changes, increase its elected commitments to $660 million and increase the company’s borrowing base to $750 million. The borrowing base maturity date will also be extended to July 1, 2025.
Recommended Reading
Keeping it Tight: Diversified Energy Clamps Down on Methane Emissions
2024-04-24 - Diversified Energy wants to educate on emission reduction successes while debunking junk science.
Darbonne: The ESG Sword: BlackRock's Life, Death by ESG
2024-04-17 - BlackRock, the $10 trillion investment manager, is getting heat for too much ESG investing, while shareholders are complaining it’s doing too little.
Fire Closes Atlas Energy’s Kermit, Texas Mining Facility
2024-04-15 - Atlas Energy Solutions said no injuries were reported and the closing of the mine would not affect services to the company’s Permian Basin customers.
Coalition Launches Decarbonization Program in Major US Cities, Counties
2024-04-11 - A national coalition will start decarbonization efforts in nine U.S. cities and counties following a federal award of $20 billion “green bank” grants.
Exclusive: Scepter CEO: Methane Emissions Detection Saves on Cost
2024-04-08 - Methane emissions detection saves on cost and "can pay for itself," Scepter CEO Phillip Father says in this Hart Energy exclusive interview.